Karzai Demands U.S. Bailout Largest Afghan Bank

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

Jonathan Turley

13 thoughts on “Karzai Demands U.S. Bailout Largest Afghan Bank”

  1. I really don’t understand where this man is coming from. Is he so out of touch as to think that America, which has its own financial bailout woes, will actually bailout directly a foreign bank? Remember the uproar when it was found that our supposed domestic bank bailout included some foreign banks?
    And he thinking aloud about joining the Taliban?
    Don’t we provide his security or something? Why do we even support him? He is the opposite of a puppet head of state.
    Another reason why we just shouldn’t be in Afghanistan.

  2. There is an update to this story today from The Guardian

    Afghan security forces used batons on unruly customers scrambling to withdraw their savings today from the country’s biggest bank, which is mired in a scandal of corruption and mismanagement.

    Officers from the National Security Directorate struggled to maintain control of up to 200 people outside one branch in the capital as desperate customers tried to take out money ahead of a three-day Muslim holiday.

    Witnesses saw armed officers of the National Security Directorate beat several people ā€“ including at least one policeman ā€“ among queues of angry customers gathered outside the only bank branch to open on Wednesday.

    “It’s Eid, we need money for food, clothes, candy,” said Hameed Iqbal, an airforce member. “They said all the bank branches would be open, they lied. I’m extremely angry.”

    A Kabul Bank spokesman said the decision to close all other branches had been taken by the central bank.

  3. The troubles of Kabul Bank are worrisome for two reasons: one, that 250,000 of government workers rely on it for the delivery of their salaries. And lets not forget that a good portion of those workers are armed (the police and the army). And secondly, it will force the citizens to reconsider their trust for the banking system, which is young and fragile.for details, please read my blog

    http://costofwar.wordpress.com/

  4. Buddha,

    Well to be fair, you’d be hard pressed to find a continent without a relevant example. Who can forget the ill advised “Great Old One” regime we installed in the Antarctic?

  5. eniobob,

    Interesting. And based on his behavior, a real possiblity.

    Gyges,

    That was as dry as a martini. Well played.

    This guy has been a clown and a hindrance since the day Bush propped him up.

  6. So supporting somebody’s rise to power just because they dislike the same people as you turns out badly?

    If only there was some example (preferably in the same country) of that happening we could have learned from.

  7. I suspect Karzai is auditioning for a position at Goldman Sachs and demonstrating, in real time, how easily he could become one of the boys.

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