Paraguay's Ex-President Pena Under House Arrest After Bank Collapse

Paraguay's ousted President Santiago Pena was placed under house arrest Friday on charges including breach of trust and influence peddling, following his impeachment over the collapse of Ueno Bank, which froze savings for nearly half the country's 6 million people. Vice President Pedro Alliana was sworn in as his successor. All 44 senators voted to remove Pena, marking the second impeachment of a Paraguayan president since 1989. Regulators seized Ueno Bank three days earlier, triggering protests and a political crisis. Lawmakers accuse Pena of steering public funds into the bank while regulators overlooked risky lending; he denies wrongdoing. Prosecutors also ordered the arrest of former central bank chief Carlos Carvallo. Pena, a former IMF economist, rose under mentor Horacio Cartes but sought to build his own power base, with Ueno as its linchpin. Cartes turned on him after the collapse, sealing his fate. Depositors are beginning to recover funds, and 27 people, including Ueno's founder, face charges.