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While Criminal US Bankers Receive Golden Parachutes, Barbarian Afghanistan Has Just Arrested Executives Of Failed Kabul Bank

Tyler Durden's picture


Sometimes it is good to put things in perspective when comparing developed democracies like America and barbaric despotic dictatorships like Afghanistan. In one country, radioactively orange criminal heads of imploded mortgage lenders, who are responsible for billions in losses at rescued companies that will soon require more taxpayer bailouts, received multi million dollar golden parachute severance packages and slips on the write from the country's "regulators." In the other, former executives of a major failed bank have been arrested over huge fraud that led to its near collapse, while the head of its central bank flees to the first country on fears of prosecutions. Take a wild guess which country is which...

From the BBC:

Deputy Attorney General Rahmatullah Nazari said the bank's founder and its former chairman Sherkhan Farnood and ex-CEO Khalilullah Ferozi were being held on embezzlement charges.

He told Reuters news agency both men would go on trial within a month.

Revelations of fraud, bad loans and mismanagement prompted a run on the bank last September.

It was bailed out by the central bank as part of efforts to prevent it from collapsing.

In April, it was split into a "good" and "bad" bank, and President Hamid Karzai vowed to take action against those responsible for the crisis.

Mr Farnood and Mr Ferozi, who both owned large stakes in the bank, were placed under house arrest at the time trouble hit, though they were reportedly able to move freely around Kabul nonetheless.

"We had to make arrests because Haji Khalil [Ferozi] and Sherkhan are the kind of people who can easily slip away from the country," Mr Nazari said, Reuters reported.

"Both are responsible for millions of dollars of losses in Kabul Bank and they must appear in court before they go too far from our hands," he said.

Another person who as we reported, and who is implicated in the massive fraud, is none other than the head of the former central bank head: Fitrat.

Earlier this week Afghan authorities issued a warrant for the arrest of the former governor of the Afghan central bank, Abdul Qadeer Fitrat, saying he was being investigated in connection with the fraud at Kabul Bank.

But he had already fled to the US, saying his life was in danger for exposing fraud.

In April, Mr Fitrat himself had accused several key Afghan officials - including President Hamid Karzai's brother Mahmoud Karzai and Vice-President Qasim Fahim - of involvement. Both deny the charges.

Funny: he was being sought in connection with the fraud, while he told all his central banking cohorts that he was in danger due to exposing fraud.

Understandable. Must have been lost in translation.


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Thu, 06/30/2011 - 14:37 | 1416350 wandstrasse
wandstrasse's picture

OT, but the 40th anniversary of pure fiat is close (15 August 1971). Shouldn't ZH celebrate accordingly? However, when I think about it... 40th birthdays are sad events, you are closer to the grave than ever before... so... getting drunk alone will do.

Thu, 06/30/2011 - 16:09 | 1416703 shortus cynicus
shortus cynicus's picture

Come on: convertibility of FRNs to US dollars was never abandoned, it was only suspended until markets calm down, so it's transitory.

"I have instructed Secretary Connelly to suspend temporarily the convertability of the dollar into gold..."

Thu, 06/30/2011 - 16:19 | 1416757 dark pools of soros
dark pools of soros's picture

and people wonder why GenX is how we are

Thu, 06/30/2011 - 16:31 | 1416821 centerline
centerline's picture


Thu, 06/30/2011 - 16:38 | 1416845 Ghordius
Ghordius's picture

Good news: the average age of fiat is 80 years.

Thu, 06/30/2011 - 14:34 | 1416353 carbonmutant
carbonmutant's picture

 Well see, that's the whole point here.

If you don't have a bank failure nobody gets arrested...

Thu, 06/30/2011 - 15:45 | 1416588 carbonmutant
carbonmutant's picture
JPMorgan settles with the SEC for $153.6 million

JPMorgan didn’t admit or deny allegations in the complaint.   It will pay a civil penalty of $133 million, plus $18.6 million repayment of its profits and $2 million in interest.

Thu, 06/30/2011 - 14:36 | 1416358 Cognitive Dissonance
Cognitive Dissonance's picture

Actually I would have no problem giving those criminal US Banksters a Golden shower if it would help. But that's just me.

Anyone else interested in whipping it out and helping a bankster in need?

Thu, 06/30/2011 - 14:40 | 1416376 Larry Darrell
Larry Darrell's picture

The following phrase comes to mind:


"I wouldn't piss on your teeth if your gums were on fire."

Thu, 06/30/2011 - 14:46 | 1416405 malikai
malikai's picture

Yea, sorry. My piss is too valuable for that. I'll be utilizing it in the far more important act of flushing instead.

Thu, 06/30/2011 - 14:53 | 1416413 Overflow-admin
Overflow-admin's picture

Yeah sure, here's the gold shower:

(when does the season 2 begin?)

Thu, 06/30/2011 - 14:50 | 1416419 Scisco
Scisco's picture

I don't need to click the link to know what it is pointing to.


Thu, 06/30/2011 - 16:10 | 1416728 RockyRacoon
RockyRacoon's picture


Thu, 06/30/2011 - 15:00 | 1416459 dexter_morgan
dexter_morgan's picture

Sometimes you worry me.............

Thu, 06/30/2011 - 15:11 | 1416499 Cognitive Dissonance
Cognitive Dissonance's picture

Sometimes I worry me as well. Then I visit ZH and find I'm tame by comparison to many others.

It's always good to find out you are more normal than normal.

Thu, 06/30/2011 - 20:24 | 1417445 StychoKiller
StychoKiller's picture

Support mental health week or I'll kill you! :>D

Thu, 06/30/2011 - 14:37 | 1416364 Gubbmint Cheese
Gubbmint Cheese's picture

Why do they hate America?

Thu, 06/30/2011 - 18:02 | 1417101 Uncle Remus
Uncle Remus's picture

Probably for the same reason many posters here do.

Thu, 06/30/2011 - 14:42 | 1416367 Buckaroo Banzai
Buckaroo Banzai's picture

Bankers letting other bankers hang? Must mean they are throwing in the towel on Afghanistan. Since bankers run this country, I suppose the troops will be coming home soon now?

Thu, 06/30/2011 - 14:41 | 1416383 Cognitive Dissonance
Cognitive Dissonance's picture

Nah, just rotating in a new set of thieves.

With such a young and virgin territory to rape the line of serial rapists is long and impatient. And it's becoming rather difficult for those in line to hide their anticipatory boners much longer.

Thu, 06/30/2011 - 15:01 | 1416453 Bob
Bob's picture


Thu, 06/30/2011 - 17:45 | 1417029 onthesquare
onthesquare's picture

boots on the ground are so passe'.

Droid planes flown at video display terminals that is what will replace the soldiers coming home.

colateral damage will be up but the military will accept that.

Thu, 06/30/2011 - 14:50 | 1416420 falak pema
falak pema's picture

bankster shenanigans is the new trend world wide. Fiat money being toxic like white powder and just as hallucinogenic, we can expect a rash of central bankers on the run with their suitcases full of green backs, lost in translation in Baghdad for 6 billion, re-found in smaller denomination in Kabul and elsewhere. You never lose a true green back anywhere in the world. Make haste while that trend is still "gaga-cool" and in the air.

Thu, 06/30/2011 - 14:51 | 1416427 AldoHux_IV
AldoHux_IV's picture

Is that what justice looks like?  It's been so long I forgot about the concept entirely.

Thu, 06/30/2011 - 15:02 | 1416467 NotApplicable
NotApplicable's picture

Doubtful. More like gangs fighting over turf. In this case, one of the gangs has the facade of legitimacy called 'government' and they are trying their best to keep the ruse alive.

Thu, 06/30/2011 - 15:26 | 1416539 hamurobby
hamurobby's picture

Sounds to me like the bankers were not sharing the wealth with the right people.

Thu, 06/30/2011 - 16:05 | 1416687 Zero Govt
Zero Govt's picture

Afghanistan is a 'young' democracy (Banana Republic) and America is a mature democracy (Banana Republic) ...give it a decade or two and these Afghan bankers will get away with financial murder as they pass ever more regulations, appoint more regulators and thicken the layers of the financial protection racket 

Thu, 06/30/2011 - 14:56 | 1416430 Scisco
Scisco's picture

Someone please remind what happened with Jullian Assange?

Who wants to place bets if Abdul Qadeer Fitrat gets arrested.

Thu, 06/30/2011 - 14:58 | 1416455 falak pema
falak pema's picture

Julian Assange lives in the UK and watches wimbledon like the rest of us. The slightest wrong move and the surrogate Swedish justice will put its hooks on him for "rape" without rubber... a new concept.

Thu, 06/30/2011 - 15:05 | 1416465 Temporalist
Temporalist's picture
WikiLeaks: What Does it Cost to Change the World?

Thu, 06/30/2011 - 15:00 | 1416460 NotApplicable
NotApplicable's picture

So, only the Fitrats manage to make it to the US for protection. Fitting

Thu, 06/30/2011 - 15:06 | 1416468 gwar5
gwar5's picture

What's worse than a banana republic? One without any bananas. Yes, we have no bananas!

And we are officially a bigger banana republic than Afghanistan.... where camels are taxis, growing opium is revered, and bankers are still held to account for corruption.

Thu, 06/30/2011 - 15:37 | 1416577 Things that go bump
Things that go bump's picture

+1 for the laugh.

Thu, 06/30/2011 - 15:04 | 1416476 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Damn barbaric Afghani tribesmen don't know how to treat respectable bankers.  Bankers do God's work.

Thu, 06/30/2011 - 15:16 | 1416503 illyia
illyia's picture



Thu, 06/30/2011 - 18:55 | 1417234 Rynak
Rynak's picture

And it begins with mental corruption, taught onwards from the moment you are born. Though, one in a million for unknown reasons resists against all odds.

Thu, 06/30/2011 - 15:18 | 1416514 Alienated Serf
Alienated Serf's picture

radioactively orange criminal = lulz

Thu, 06/30/2011 - 15:23 | 1416526 SheepDog-One
SheepDog-One's picture

China executes crook banksters, Afghanistan arrests crooked banksters, USA gives crooked banksters as many billions as they want.

Thu, 06/30/2011 - 15:31 | 1416567 Eireann go Brach
Eireann go Brach's picture

They should stick US bankers and politicians in an Afghanistan jail that houses donkeys and goats and make them mate, then we would get half breeds that look like half of Nancy Pelosi and Bwarney Fwank!

Thu, 06/30/2011 - 15:31 | 1416570 Bansters-in-my-...
Bansters-in-my- feces's picture

Why that FitRat is one Fat Cat....

with 9 lives.

Thu, 06/30/2011 - 15:42 | 1416589 eurusdog
eurusdog's picture

But this is just one crook 1 arresting crook 2, so the money spigot stays open.

Thu, 06/30/2011 - 15:44 | 1416609 youngman
youngman's picture

Geitner just announced he wants to leave after the debt ceiling has passed...wierd timing.....but maybe he is going to hang out with the Afgan bankers...

Thu, 06/30/2011 - 15:49 | 1416635 JW n FL
JW n FL's picture

Goldman Sachs Board Member Spared any investigation by the SEC... Surprise! Surprise!! Surprise!!!

Gupta SEC Case Postponed Indefinitely” Notice that Goldman Sachs is NOT! in the Head Line?? And is not mentioned until the end of the article..  

Gupta was not called as a witness at Rajaratnam's trial, which ended in his conviction on all counts last month. But his voice was heard in several taped phone calls between the men; prosecutors say that, in one case, Gupta called Rajaratnam only seconds after leaving a Goldman board conference call to tell him that bank had received a big investment from Berkshire Hathaway.”

Thu, 06/30/2011 - 15:58 | 1416659 buzzsaw99
buzzsaw99's picture

hang the pikers!

Thu, 06/30/2011 - 16:59 | 1416680 JW n FL
JW n FL's picture

Squirls in the Server! Double!!

Thu, 06/30/2011 - 18:54 | 1417226 viahj
viahj's picture

Rattus Afganicus

Thu, 06/30/2011 - 16:54 | 1416832 JW n FL
JW n FL's picture

Squirls in the server.. triple!

Thu, 06/30/2011 - 16:56 | 1416920 Fix It Again Timmy
Fix It Again Timmy's picture

Forget the SEC, take matters into your own hand...

BFB - Bullets For BAnkerS


Thu, 06/30/2011 - 17:18 | 1416976 nah
nah's picture

breeders probably think the Earth rests on the back of a turtle... gunna breed asia muslim as i see it


real dangerous stuff when some fools label israel a supernational zionist militaristic regional agressor... probably even question the UN oil wars, barbarians

Thu, 06/30/2011 - 17:30 | 1416994 Muddy1
Muddy1's picture

Geithner is leaving?  Does the US have an extradition treaty with Afghanistan, or wherever he's headed for?

Thu, 06/30/2011 - 18:03 | 1417093 Uncle Remus
Uncle Remus's picture

Isn't fiat Italian?

Thu, 06/30/2011 - 18:27 | 1417149 InconvenientCou...
InconvenientCounterParty's picture

"...barbaric despotic dictatorships like Afghanistan."

A lot of Afghans risked life and limb to vote in "democratic style" elections. Throw them a bone will ya?

Thu, 06/30/2011 - 19:05 | 1417253 Rynak
Rynak's picture

They risked their lives to vote for "representative democracy"? I'm not sure if i should pity them, consider them incredibly stupid, or just desperate....... probably the third, making them blind towards the second.

Run of the mill representative democracy, is nothing more than dictatorship + illusion.

Thu, 06/30/2011 - 18:52 | 1417210 zerozulu
zerozulu's picture

A country of US$18 billion GDP is stuffed with US$120 billion a year. What else do you expect.

Fri, 07/01/2011 - 07:34 | 1418155 lamont cranston
lamont cranston's picture

Fitrat. Turbo Timmy is jealous of that name.

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