In a sequence of events that would be comical if it weren't so grim, Paraguay's rightwing president Santiago Peña was placed under house arrest minutes after Congress impeached him. The cause? A banking crisis that left more than half the country's adult population unable to access their own money. Nothing says "economic stability" like 2.9 million people suddenly unable to buy bread or water.

Peña is being investigated for allegedly using his political influence to favour Ueno, a bank that expanded exponentially under his government and was suspended this week after irregularities. The suspension froze the accounts of about 60% of the country's adult population, who woke up one morning to find their cash had vanished into the digital ether. Protests erupted nationwide, some turning violent as citizens clashed with police. Because if there's one thing people love, it's not being able to feed their families.

Impeachment proceedings began on Wednesday and wrapped up Friday, just minutes before Peña's arrest was ordered. His vice-president, Pedro Alliana, was sworn in as the new leader while a public prosecutor, flanked by police outside Peña's home, informed local media that the former president was under house arrest. Prosecutor Elena Fiore Franco said, "It has been established that he is indeed inside his home. He voluntarily allowed officers to enter and made himself available for all procedural purposes." How gracious of him.

The public prosecutor's office had opened an investigation into Peña on Thursday on suspicion of illicit enrichment, money laundering, and influence peddling. Peña, one of US president Donald Trump's main allies in the region, had tried to resign on Thursday to retain the special jurisdiction afforded to former presidents - who become senators for life in Paraguay - but lawmakers rejected his resignation, leaving him subject to ordinary courts. Because nothing says "I'm innocent" like trying to cling to immunity.

Amid rumours he had fled to Argentina, the 47-year-old economist was expected to appear before Congress to present his defence but left that to his lawyers while continuing to post on social media. Before the impeachment concluded or the arrest warrant was issued, he posted: "I say goodbye with gratitude, while fully recognising the anguish of those who are now waiting for answers." The anguish, of course, of former Ueno customers who can't access their own money.

Soon after taking office, Peña appointed Carlos Carvallo Spalding, a former CEO of Ueno, as head of the country's central bank. Three months later, Spalding - now regulating the company he used to run - allowed Ueno to become a digital bank, putting it on the path to becoming one of Paraguay's largest banks by deposits in just a few years. The arrest warrant for Peña also includes Spalding. Because who doesn't love a good old-fashioned revolving door?

Peña himself had about US$1m in shares he bought in 2019 in a company that would become Ueno Holding in 2022, the parent company of the conglomerate that controlled Ueno Bank. Even after becoming president, he only disposed of the shares in April 2025. He said he had bought them purely as an "investor." An investor with a very convenient regulatory environment.

As the bank aggressively expanded through an easy account-opening system and by promising returns far above those offered by the rest of the market, it also managed to bring public pension funds controlled by Peña's administration into its portfolio. "Because Ueno had the blessing of the presidency, most of the pension funds close to the government went to deposit their money in the bank," said political analyst Hugo Duarte. An estimated $800m to $860m in state and pension funds were invested in Ueno. That's a lot of blessings.

As pressure mounted and retail sales fell by as much as 80% because much of the population couldn't access their own money, Peña lost the support of his own party. During the impeachment session, opposition senator Rafael Filizzola said Paraguay was facing "one of the biggest corruption scandals since the return of democracy" and the "biggest fraud carried out from political power in the democratic era." High praise indeed.

So ends the cautionary tale of a president who thought he could have his cake and eat it too - except the cake was the life savings of 2.9 million people, and now he's under house arrest. The bank, meanwhile, remains suspended, and the country is left to pick up the pieces. But hey, at least the former president has a comfortable home to be confined to.