Santiago Pena charged in Paraguay's Ueno $1.6 billion collapse probe
Former president Santiago Pena, Paraguay's president and a political ally of US President Donald Trump, has been charged with embezzlement and breach of trust after the $1.6 billion collapse of Ueno.
The fallout was huge: over 40% of Paraguayans lost access to their savings.
Pena denies any wrongdoing but is now under house arrest following widespread protests by depositors demanding the return of their savings.
Central bank president, interior minister resign
After being impeached by lawmakers (which stripped his immunity), former vice-president Pedro Alliana, his appointment drew criticism from demonstrators because he belongs to the same right-wing Colorado Party as Pena.
The investigation has widened, with police raiding Ueno's parent company and arresting eight bank executives.
To help calm things down, the central bank launched a plan to repay eligible depositors up to $1,600 each, though both the central bank president and interior minister have since resigned over the mess.