Kieran Nugent reports on Paraguay's political crisis

Democrats incredibly angry and it's unlikely there will be very much goodwill towards them. On Capitol Hill, Joe Miller reports on the intersection between AI and politics for the ft. Thanks, Joe. Thanks very much. Paraguay's president has quit his job just days after a massive bank collapsed and citizens demanded his impeachment. Minutes after he resigned yesterday, the country's lower house and parliament voted unanimously to impeach him. DFT's Kira Nugent has more so Paraguay's president Santiago Pena has resigned because of a banking crisis that erupted earlier this week. This is Ueno Bank, a former fintech that had a really stratospheric rise in Paraguay. It already has 2.9 million customers, which is about 60% of Paraguay's adult population. And on Tuesday, that all came crashing down when the central bank said that Ueno was insolvent and it was seizing control of the bank and would begin to wind down its operations. Pena's been blamed for the collapse of Ueno Bank. He's a former investor in its holding company and he also plowed a lot of public pension money into the bank. So the, so the fact that it's gone insolvent has gotten people very upset. So at the moment there are a lot of people who aren't able to access the money they had deposited in Ueno, although the central bank says that most of them will be made whole using public money. And the central bank also says there isn't a wider risk to the financial system, that this is kind of a self contained case. But you know, for the country longer term, this is not great for its image as it really pursues a kind of status as a safe haven for investors in South America. Paraguay's sovereign bond prices have been suffering in the last few days and I think more broadly people will be kind of thinking how much of Paraguay's problems with, you know, corruption and law and order and governance have really been resolved. There's a lot of questions about how this bank became so powerful so fast and why no one saw the problems earlier. That's the FT Southern cone correspondent Kieran Nugent. Stay up to date with the latest on this story by following coverage on FT.com.