Paraguay ousts president after Ueno Bank collapse

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Paraguay's Congress removed President Santiago Peña from office on Friday following the collapse of Ueno Bank, a major fintech lender, placing him under house arrest as protests erupted over the scandal. The bank's seizure left over one million depositors locked out of their accounts. Ueno Bank, once a digital success story bringing poor Paraguayans into the financial system, was declared insolvent Tuesday after regulators found excessive intracompany loans and understated bad-loan rates. Controlling shareholder Miguel Vázquez is jailed, and the central bank director resigned. The collapse also threatens government funds and World Cup team deposits. The scandal deals a blow to US President Donald Trump's influence efforts in Latin America, as Paraguay was touted as a model ally by Secretary of State Marco Rubio. It also exposes divisions within the ruling Colorado Party, with former leader Horacio Cartes backing Peña's removal.


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