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Paraguay's former president faces prosecutors after his removal over bank collapse

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Core Development: Paraguay's former president faces prosecutors after his removal over bank collapse
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Market & Financial Impact: Prosecutors ordered the arrest of Peña as part of a criminal investigation into alleged breach of trust and other offenses tied to the collapse of Ueno Bank.
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Paraguay's former president was taken to the attorney general's office for questioning Saturday, just hours after being ousted by Congress over the collapse of a major bank. The Central Bank said it was working to compensate hundreds of thousands of people who were locked out of their accounts this week.

Drone footage taken by Paraguay's Telefuturo showed ousted President Santiago Peña arriving at the attorney general's compound in a black SUV, escorted by police officers. He wore navy blue pants and a white shirt and was not handcuffed.

Paraguayan prosecutors on Friday ordered the arrest of Peña and former Central Bank chief Carlos Carvallo as part of a criminal investigation into alleged breach of trust and other offenses tied to the collapse of Ueno Bank. Peña was transferred to a military base late Friday as hundreds of protesters gathered outside his home.

The Senate issued the arrest order soon after removing Peña from office in a unanimous vote. The verdict came just three days after regulators seized Ueno Bank, freezing nearly 3 million customers' access to their savings and triggering a political crisis.

Vice President Pedro Alliana replaced Peña and began naming a new Cabinet Saturday. The Central Bank said Saturday that 1.2 million Ueno customers had received partial or full reimbursement of their insured deposits under Paraguayan law.

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Official Publisher Attribution: This report is aggregated from CNBC. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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