Thursday, September 02, 2010

Exporting bailouts...

...deeper into the quagmire.

Breaking News Alert: Karzai's brother calls for U.S. to shore up Kabul Bank
as withdrawals accelerate September 2, 2010 11:6:59 AM

As depositors thronged branches of Afghanistan's biggest bank, Mahmoud Karzai, the brother of the Afghan president and a major shareholder in beleaguered Kabul Bank called on Thursday for intervention by the United States to head off a financial meltdown.

Kabul Bank handles salary payments for soldiers, police and teachers. It has scores of branches across Afghanistan and holds the accounts of key Afghan government agencies. The collapse of the bank would likely spread panicthroughout the country's fledgling financial sector. The hemorrhaging offunds from the bank accelerated on Thursday.

No comments: