November 7, 2026 / 5:12 AM EST / CBS/AP

Add CBS News on Google

Paraguay's president has been placed on house arrest on Friday after the collapse of a government-linked bank that locked nearly half the country's population out of their accounts.

Paraguay's Senate voted to remove Santiago Peña for misconduct in office, making him the second president ousted by impeachment since the end of Gen. Alfredo Stroessner's 35-year dictatorship in 1989.

Regulators had seized Ueno Bank just three days earlier, sending shock waves through the financial system and setting off the country's worst political crisis in more than a decade.

Santiago Pena, Paraguay's president, during a Bloomberg Television interview in New York, US, on Friday, Sept. 25, 2026.…