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Main Afghan Bank Faces Collapse

HeadlineSep 03, 2010

The Afghan government, meanwhile, is facing the potential collapse of its largest bank. Scores of account holders have pulled their money from the Kabul Bank this week amidst speculation the bank is headed for insolvency. Kabul Bank has faced allegations of making illegal loans to well-connected insiders and shareholders. In an interview with the Washington Post, Mahmoud Karzai, a top shareholder and the brother of Hamid Karzai, called for US intervention to shore up the bank’s finances.

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