Santiago Peña, Paraguay’s ousted president, was placed under house arrest in Asunción on suspicion of breach of trust and influence peddling following the collapse of a government-linked bank. The Senate removed Peña from office on Friday, with all 44 senators present voting to impeach him over misconduct in office tied to Ueno Bank. Regulators had seized Ueno Bank three days earlier amid a solvency crisis that locked nearly half the country’s 6 million people out of their savings. Peña was ordered to remain at one of his homes in Asunción until he appears before prosecutors on Saturday morning. Police ringed the house as crowds gathered outside and vowed to keep vigil. Prosecutors also ordered the arrest of Carlos Carvallo, who ran the finance company that became Ueno before Peña named him central bank chief in 2023. It was not immediately clear whether Carvallo was taken into custody. Impeachment charges accuse Peña of using his political influence to steer hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky insider lending. The most serious charge Peña faces can carry up to 10 years in prison. Peña’s stake in Ueno’s holding company, which he divested under pressure last year, and his appointment of a former Ueno executive to run the central bank are also cited. Ueno’s seizure triggered Paraguay’s worst political crisis in more than a decade. Depositors and retirees protested in the plaza outside Congress as police used rubber bullets and pepper spray. Paraguay’s largest teachers union, with more than 40,000 members, planned an indefinite national strike starting Monday to press for protection of public pension funds. When regulators seized the bank, customers could no longer withdraw cash, access savings, or use cards to make purchases. The bank’s expansion was fueled by more than $800 million in public money, and Ueno said more than 1 million Paraguayans opened their first bank accounts there. The fallout also hit other services, including a ride-hailing app that relied on Ueno, shutting down and leaving about 3,000 drivers without work. Meanwhile, prosecutors charged 27 people in a separate case against Ueno executives, including Vázquez, with crimes such as breach of trust and attempted fraud. A judge ordered six former directors, including Vázquez, held in pretrial detention, while two others were confined to their homes with electronic monitors. Luxury cars, a yacht, and two small planes linked to Vázquez were seized. At Friday’s swearing-in, Vice President Pedro Alliana took over to serve out the term ending in August 2028. Peña remains under house arrest and is set to appear before prosecutors on Saturday morning.