Paraguay raids ex-president’s home: Why a bank crash brought down Pena

Paraguayan police raided former President Santiago Pena’s home as part of an investigation into Ueno Bank’s collapse, which triggered protests and a major economic and political crisis. The Senate removed Pena on Friday after the failure left nearly three million customers unable to access their savings; he denies wrongdoing and says the bank’s problems were a regulatory matter.

Prosecutors accuse Pena of breach of trust and using his office for personal gain, alleging he steered public funds to Ueno despite previously holding shares in its parent company. The bank held about $850m in public money by June, including state pension funds, and prosecutors say it lent Pena about $500,000 for his mansion. His successor, Pedro Alliana, says $158m has so far been refunded to 1.2 million customers; further repayments are expected.