Paraguay's president placed under house arrest after bank collapse

Paraguay's President Santiago Peña was placed under house arrest Friday after the Senate removed him from office following the collapse of Ueno Bank, which locked nearly half the country's population out of their accounts. Peña faces charges of breach of trust, influence peddling, and using public office for personal gain, with penalties up to 10 years in prison. Lawmakers accuse him of steering hundreds of millions in public funds to the bank while regulators ignored risky insider lending. He denies wrongdoing. The bank's seizure triggered Paraguay's worst political crisis in over a decade, causing bond losses, currency decline, and widespread disruption. Depositors began recovering funds Thursday, with the central bank calling the collapse isolated and the broader financial system safe.