Sunday, February 13, 2011

The Boston Globe's Invisible Ink: Bailout of Afghan Bank to Cost $1 Billion

Never saw it in the printed paper:

"Afghan bank’s losses could reach $900m" bby New York Times / January 31, 2011

KABUL, Afghanistan — Fraud and mismanagement at Afghanistan’s largest bank have resulted in potential losses of as much as $900 millionthree times previous estimates — heightening concerns that the bank could collapse and trigger a broad financial panic in Afghanistan, according to US, European, and Afghan officials.... 

The scandal has severe political and security implications. Investigators and Afghan businessmen believe that much of the money has gone into the pockets of a small group of privileged and politically connected Afghans....

The bank is also the prime conduit to pay Afghan security forces, leaving the US military, which pays the salaries, looking for new banks to process the $800 million payroll.

As Afghan regulators struggle to find out where the money went, many officials and international monitors concede that the missing millions may never be recovered, raising questions of how the losses could be replaced to keep the bank from failing. 

Related: American Taxpayers Bailout Afghan Bank

That give you a clue? 

--more--"