Paraguay's ousted president placed under house arrest after Ueno Bank collapse

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Paraguay's ousted President Santiago Peña was placed under house arrest Friday on charges including breach of trust and influence peddling, after the Senate unanimously removed him over the collapse of government-linked Ueno Bank, which froze savings for nearly half the country's 6 million people. All 44 senators voted to impeach Peña, marking only the second such ouster since 1989. Regulators seized Ueno Bank three days earlier, triggering Paraguay's worst political crisis in over a decade. Peña faces up to 10 years in prison, with prosecutors also ordering the arrest of former central bank chief Carlos Carvallo. Vice President Pedro Alliana was sworn in as president, inheriting pressure to return depositors' money. Ueno had attracted over 1 million first-time bank customers with more than $800 million in public funds, while lawmakers accuse Peña of steering state money into the bank and shielding it from regulatory scrutiny.


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