US to bailout largest Afghan bank

[libertybrewcity]

Looks like it doesn't even have to go through congress. The Fed can just 'lend' them money.
~~~~

The New York Times reports that the U.S. has agreed to assist the Afghan government in bailing out that nation's largest bank in order to prevent a nationwide financial crisis:

Details of the deal, including how much each government would contribute, were still being worked out on Saturday between the Central Bank of Afghanistan and the United States Treasury Department, officials said...

Top officials at Kabul Bank and a senior leader at the Central Bank declined to comment publicly on the proposed bailout, which was still being negotiated. However a manager at the Central Bank and a senior American official confirmed what the American official called an "intervention."

Crowds gathered at Kabul Bank branches around the capital to withdraw dollar and Afghan currency savings, with customers saying they had lost faith in the bank's solvency following a change in leadership and reports that tens of millions of dollars had been lent to political elites for risky real estate investments.

http://www.huffingtonpost.com/2010/09/04/afghan-bank-bailout-us-to_n_705830.html

[lucius]

Man, I just want the Iraq Dinar to Revalue...I hope this banksters' fun with numbers happens soon...I got a boat-load of dinars, sure beats tossing out $100's out of helicopters...


Looks like it doesn't even have to go through congress. The Fed can just 'lend' them money.
~~~~

The New York Times reports that the U.S. has agreed to assist the Afghan government in bailing out that nation's largest bank in order to prevent a nationwide financial crisis:

Details of the deal, including how much each government would contribute, were still being worked out on Saturday between the Central Bank of Afghanistan and the United States Treasury Department, officials said...

Top officials at Kabul Bank and a senior leader at the Central Bank declined to comment publicly on the proposed bailout, which was still being negotiated. However a manager at the Central Bank and a senior American official confirmed what the American official called an "intervention."

Crowds gathered at Kabul Bank branches around the capital to withdraw dollar and Afghan currency savings, with customers saying they had lost faith in the bank's solvency following a change in leadership and reports that tens of millions of dollars had been lent to political elites for risky real estate investments.

http://www.huffingtonpost.com/2010/09/04/afghan-bank-bailout-us-to_n_705830.html

[phill4paul]

Well if THIS doesn't piss taxpayers off nothing will. My guess? Nothing will.

[Lucille]

I think I'm gonna be sick...

[Johnnybags]

Karzai's brother lives in a palace in Dubai. The world is so ******* up now.

[Kludge]

To be effective, the USG MUST dictate the Afghani gov't better regulate their banks. None of the risky investments made by some bank traders (arguably rogue traders) were on the books. Banks must be held accountable to account for their trades and disclose these to the public, here and in Afghanistan, whether by government or depositors.

[james1906]

This is why I bank at First Mullah Credit Union.

[amy31416]

Even the libs are irked by this...we'll see if it sticks.

[Anti Federalist]

Well if THIS doesn't piss taxpayers off nothing will. My guess? Nothing will.

Your guess would be right sir.

[Kludge]

Why would taxpayers be pissed about the USG rebuilding Afghani infrastructure but not pissed about the USG destroying Afghani infra.?

[lucius]

Yeh, our military is used by the banksters kinda like Shiva...we destroy and then create...all on our tax dollar--want the solution to this bullshit? Open-season no-limit on the banksters cause this IS their gig since inception of this country and before...nothing new under the sun. (Note--I had no idea you are one of those sneaky vodka drinkers, makes sense though, you seem to handle it well...) :)


Why would taxpayers be pissed about the USG rebuilding Afghani infrastructure but not pissed about the USG destroying Afghani infra.?

[Lucille]

I know you're all probably shocked, but the neocons are unsurprisingly quiet on this issue.

Kudos to the filthy, fascist treasury for their holiday news dump.

[ItsTime]

any other link besides crackhuffingtonpost?

[Lucille]

any other link besides crackhuffingtonpost?

PuffHo linked to the NYT (http://www.nytimes.com/2010/09/05/world/asia/05kabul.html).


Correction: September 4, 2010

An earlier version of this article, citing American and Afghan officials, erroneously reported that the United States would contribute money to help bail out the Kabul Bank. American officials say the United States is providing technical assistance but no funds for the bailout.

Mmmm hm. We believe you....

They'll get their bail out, and Americans will be none the wiser.

[tjeffersonsghost]

Wow, we can't even find the money to lend to small businesses and yet we can bail out Afghani banks. I no longer have hope for this nation. I don't even think RP can fix it at this point. It will take an all out Roman style crash. The only thing we can do is prepare ourselves and our families. Learn to garden, stash precious metals, learn to can, use coupons, stash food, and of course make sure you have guns.

[ItsTime]

PuffHo linked to the NYT (http://www.nytimes.com/2010/09/05/world/asia/05kabul.html).



Mmmm hm. We believe you....

They'll get their bail out, and Americans will be none the wiser.

ty

[james1906]

Let the opium pay for it!

[Working Poor]

Let the opium pay for it!

I thought that is what we were fighting for.:cool:

[Dianne]

Let me guess, the money will hit the Afghan bank; then come right back into Obama's campaign coffers. How convenient.

[free1]

I know you're all probably shocked, but the neocons are unsurprisingly quiet on this issue.

Kudos to the filthy, fascist treasury for their holiday news dump.

This is why the internet is the great equalizer.

Get on every news blog and post this info, just in time for all the not - paying - attention people to get on their laptops inside their hotel rooms after driving to their vacation destinations.

It ain't gonna be on the 11PM news for sure.

[Brian Defferding]

The article now says this:

***UPDATE*** The Times has updated their story with comments from U.S. Treasury officials insisting that no American taxpayer money will be used to recapitalize Kabul Bank: "'No American taxpayer funds will be used to support Kabul Bank,' said Jenni LeCompte, a Treasury Department spokeswoman." An earlier version incorrectly reported that American funds would be used to fund the bailout.

But William K. Black says the article was correct before that "correction":

http://neweconomicperspectives.blogspot.com/2010/09/control-fraud-crushes-kabul-and-new.html