The United States is being asked to fund another bank bailout. This one however is in Kabul. This might not sit well with Americans who continue to watch billions spent in Iraq and Afghanistan as states shutdown critical programs. Moreover, Afghan President Hamid Karzai recently stated that he was considering joining the Taliban and fired the top prosecutor to stop him from investigating grotesque levels of corruption among his advisers and family. He also accused the United States of massive fraud in his country. Now, however, he is calling on the United States to intervene to prevent Kabul Bank from failing.
There is a run on the bank and Karzai is calling on the U.S. to do something quickly.
He insists “America should do something” and wants the Treasury Department to guarantee the funds of Kabul Bank’s clients for about $1 billion on deposits. It appears his decision to join the Taliban may be delayed. By the way, recent reports shows billions stolen or lost in Afghanistan, including allegations targeting Karzai and his brothers. If true, they could shore up the bank by just transferring stolen funds from places like Dubai back to Kabul and ask their advisers to do the same.
Alternatively, with the recent report of the CIA bribing Karzai advisers on a regular basis, we could just stipulate that all U.S. bribes will be paid directly to accounts at the Kabul Bank.
Source: Washington Post