Paraguay's ousted president faces questioning over bank collapse

latimes.com [$] —

Paraguay's former President Santiago Peña was taken to the attorney general's office for questioning Saturday, a day after being placed under house arrest following his removal from office over a bank collapse. Prosecutors ordered Peña's arrest Friday as part of a criminal investigation into alleged breach of trust tied to the collapse of Ueno Bank, which regulators seized three days earlier, freezing nearly 3 million customers' accounts. The Senate removed him in a unanimous vote, and he was replaced by Vice President Pedro Alliana. The Central Bank said 1.2 million Ueno customers have received partial or full reimbursement of insured deposits. Lawmakers accused Peña of steering public funds into the bank while regulators overlooked risky lending, which he denied. His removal marks Paraguay's biggest political crisis in over a decade.


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