Paraguay's ousted president under house arrest after bank collapse leaves millions locked out of accounts

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1. 2h ago

   Paraguay's ousted president under house arrest after bank collapse

   Former President Santiago Peña was placed under house arrest Friday after the Senate unanimously removed him from office over the collapse of Banco Ueno, which locked nearly half of Paraguay's 6 million people out of their savings. Prosecutors are investigating Peña for breach of trust and influence peddling, with potential sentences up to 15 years. The crisis marks Paraguay's most severe political upheaval in years, triggered by a banking failure linked to government allies.

   Why it matters

   Banco Ueno's collapse exposed deep ties between the financial sector and Peña's administration, prompting a rapid impeachment process. The bank's failure has devastated ordinary Paraguayans who lost access to life savings, fueling public anger. Paraguay has a history of banking crises, but this is the first to topple a sitting president.

   What is confirmed

   • Santiago Peña was removed from office by a unanimous Senate vote.
   • Peña was placed under house arrest on Friday.
   • The collapse of Banco Ueno locked nearly half of Paraguay's 6 million people out of their savings.
   • Prosecutors are investigating Peña for breach of trust and influence peddling.
   • Peña faces potential sentences up to 15 years in prison.

   Still unconfirmed

   • The bank collapse is linked to government allies and Peña's administration.

   What to watch next

   • Prosecutors' formal charges and evidence presented against Peña
   • Court rulings on Peña's house arrest conditions or potential pre-trial detention
   • Impact on Paraguay's financial system and depositor compensation plans
   Sources used for this update (12)

   1. The New York Times — Paraguay’s Leader Resigns After Bank Failure Leaves Millions Without Savings
   2. Al Jazeera — How Paraguay’s Ueno collapse is only its latest banking crisis
   3. BBC — Paraguay's President Santiago Peña impeached and arrested
   4. CBS News — Paraguay's ousted president under house arrest after bank collapse leaves millions locked out of accounts
   5. The Guardian — ‘Very strange, very sad’: Paraguay bank collapse fells a presidency and leaves millions broke
   6. Reuters — Paraguay's ex-President Peña faces prosecutors after impeachment, house arrest
   7. NPR — Ousted Paraguayan president appears before prosecutors
   8. www.cbsnews.com — Paraguay's ousted president under house arrest after bank collapse leaves millions locked out of accounts
   9. www.france24.com — Paraguay places ousted president Peña under house arrest after bank collapse
   10. www.yahoo.com — Paraguay’s Peña loses top aides as impeachment trial resumes ...
   11. www.nbcnews.com — Ousted Paraguayan president placed under house arrest after ...
   12. www.cnn.com — How Paraguay’s banking crisis toppled a staunch Trump ally in Latin America
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