(UPDATE: Everybody please wave to the Comptroller of the Currency! Hey Compy – I have a very special post coming your way…)
(Editor’s Note: Monster Readers? Are you ready to take a look at the debt noose around your necks?)
Remember way back when (March, 2009) when AIG paid out $90 Billion in US taxpayer funds to American investment houses that were already receiving TARP funds, and also to foreign banks? As of March, 2009, AIG had received $182 Billion in bailout funds.
Financial companies that received multibillion-dollar payments owed by A.I.G. include Goldman Sachs ($12.9 billion), Merrill Lynch ($6.8 billion),Bank of America ($5.2 billion), Citigroup ($2.3 billion) and Wachovia ($1.5 billion).
Big foreign banks also received large sums from the rescue, including Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion; Barclaysof Britain ($8.5 billion); and UBS of Switzerland ($5 billion).
Yesterday, 9.1.2010, Afghanistan’s Central Bank took over the largest private bank in the country and threatened the top brass of Kabul Bank with arrest for ‘illegal loans’ and misuse of bank funds to purchase real estate in Dubai if they did not resign. It appears that the Central Bank governor and General Petraeus were the voices behind Karzai’s decision to ‘change management’ of Kabul Bank. This bank reportedly has $1.3 billion in deposits from ‘ordinary afghans’, yet only about 5% of Afghans have bank accounts. (Source: Washington Post)
Today, 9.2.2010, the Treasury is working with the Afghanistan Central Bank (which we taxpayers spent millions to set up; betcha didn’t know that!) as they are watching Afghans scramble to pull their money out of Kabul Bank. According to the Washington Post article, shareholders state there is $500 million in liquid cash but most of it is sitting inside the Central Bank. (Source: Washington Post).
Why would most of the largest private bank’s funds be sitting inside the Central Bank?