Paraguay’s ueno bank collapse: Owner arrested, president and central bank chief resign

Federico Miguel Vázquez Villasanti, the 36-year-old president of Grupo Vásquez and owner of Paraguay's collapsed digital bank ueno bank, has been arrested, triggering a national crisis that led to the resignations of the central bank president and the country's president. The bank, which held deposits from over 40% of Paraguay's population and served nearly 3 million clients, collapsed amid investigations by the Public Ministry into possible financial crimes, including receiving large volumes of public funds and pension money, and lending to companies owned by its own shareholders. Central bank chief Carlos Carvallo resigned Tuesday, followed by President Santiago Peña on Thursday, both having prior ties to the bank. Villasanti, who studied marketing in Miami and finance in Costa Rica, has been dubbed the "Vorcaro of Paraguay" due to similarities with Brazilian banker Daniel Vorcaro, whose Banco Master was liquidated for billion-dollar fraud. Grupo Vásquez, founded on family legacies dating to 1945, operates over 20 companies with 5,500 employees across finance, technology, and mobility sectors.