America Watches In Stunned Disbelief As Afghanistan Jails Two Failed Bank Executives

Tyler Durden's picture

Spot the banana republic:

  • Nation #1 spends and issues tens of trillions in taxpayer funds and debt, crushing the growth potential of future generations, just to bail out a banking sector full to the brim with criminal "riggers" (as today's settlements once again prove), where bubble mania was so pervasive not a single bank would have survived absent a global central bank bailout, and where bank executives wouldn't bend over for anything less than a million.
  • Nation #2 just sentenced two senior officials of a bank that collapsed under (a measly by New Normal standards) $1 billion in debt to 15 years in prison each for embezzlement and fraud.

Nation #1 is, of course, the US (or any other western nation). Nation #2 is Afghanistan.

Which one is the banana republic again?

AP reports that the scandal in 2010 shook confidence in Afghanistan's tiny banking sector, and the loss accounted for around 5 percent of the country's economy, making it the biggest banking collapse in history. By comparison, just the derivative book of JPMorgan alone is 4 times the size of US GDP.

Like in the US, the government had no choice but to bail out the bank and brought in receivers who, officials say, have traced most of the missing funds.

The scandal struck at the heart of the Kabul political establishment, involving relatives of the former president Hamid Karzai and one of his deputies, Marshall Mohammad Qasim Fahim.

 

President Ashraf Ghani has put the case at the center of his anti-corruption campaign, and within days of taking office in September ordered it resolved within 45 days.

So banker justice does exist? And this is how non-banana republics deal with a runaway criminal financial sector, which dangles the threat of systemic collapse any time the regulators, at least those who don't hope to get a job on Wall Street next, come sniffing:

The Kabul Bank's former chairman Sherkhan Farnood and former chief executive officer Khalillulah Ferozi were sentenced live on television, after a two-day appeal against earlier sentences of five years in prison. They have already served more than four years of the original sentence.

 

A panel of five judges at the Kabul Appeals Court also fined Farnood more than $237 million.

 

The court also ordered the assets of Mahmood Karzai and Hasin Fahim, brothers respectively of the former president and deputy president, along with 17 other defendants, frozen until their debts are repaid.

 

"If there is any delay in returning all the outstanding debt, they will be dealt with by the courts," the judgment said.

 

The bank was one of the country's flagship institutions and until its collapse had been responsible for paying salaries of government employees, army and police across the country.

 

It was split into two, with the offshoot, the New Kabul Bank now responsible for the salary payments, and holding around $400 million in customer deposits, officials said.

Curious for more? Read "The Great Afghan Bank Heist."

And while Afghanistan's banking sector is now well on the road to recovery and doesn't need endless central bank bailouts (unlike the US, Europe or Japan) the nation does remain a banana republic but for other reasons: namely, US forces refuse to leave. Why? One look at the chart below should explain it.

Why Afghanistan remains an incubator - under constant US supervision - for the heroin trade, read "7.6 Billion Reasons Why The US 'War On Drugs' In Afghanistan Failed"

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Ivanovich's picture

The only reason they're being jailed is probably because they didn't let the global banking cartel in on the scam.

No different than the mob boss putting a hit on the muscle that skims.

Millivanilli's picture

I wonder when zerohedge will tell people they got punked by ebola.

https://www.youtube.com/watch?v=Yk-k2NUbTOk

kliguy38's picture

Your paycheck is ready but you lost 133 keystrokes this week due to cutbacks at DHS

Skateboarder's picture

I don't see anyone watching anything in stunned disbelief. Yet.

Save_America1st's picture

They got "Madoffed".  hahaha

Maybe they can jail them with Bernie so he'll have some bankster company for once.  No other banksters in the rest of the world are going to jail.  Only suicided.

Poor Bernie is lonely in there.

Son of Loki's picture

Barry is organizing a Seal Rescue Team as we speak. It’s unthinkable how some countries treat their Banker Class. The Afghans have 'crossed the Red Line' with this stunt!

Wile-E-Coyote's picture

Hang the cunts by their bollocks with piano wire.

kchrisc's picture

I wasn't punked, as I have been screaming, "Don't believe the hype," from day one--here at ZH, to friends, and to family.

The truly bothersome thing about it has been the sheer lack of skepticism. It is one thing to be concerned, just in case, and take some basic steps, but to parrot the DC US' and complicit-media's lies is just insane, and sort of makes you part of their scheme.

Like I like to say, "They lie all the time, always." They'd only tell you the sky is blue if they found a way to enrich or seize more power for themselves.

An American,, not US subject.

 

"You can fool some of the people some of the time, a lot of people a lot of the time, but you can't fool those with guillotines any of the time."

Stoploss's picture

When the time comes, we should use guillotine's, just like they did in the original nation #1.

Hammer home the 'this time is different' meme...

Oldrepublic's picture

big discovery-the Chinese actually execute people for economic crimes, like the head of the Chinese equivalent of the FDA!

look up the name Zheng Xiaoyu

kchrisc's picture

Nothing says"never again" like a guillotine.

An American, not US subject.

Aeternus's picture

Meanwhile, In America, Apache Gun Ships Pay A Visit To The Local Utah Gun Range! https://www.youtube.com/watch?v=lDT5OpIYPUE

Bunghole's picture

We saw that link the first dozen times you posted it

NotApplicable's picture

These guys were paying dues to the wrong club!

Confused's picture

Those savages. They hated them for their freedom! 

Theta_Burn's picture

Yes they did..

Making an example and jailing fraudster Afgan wigs..

ISIS ready to issue gold and silver money.

Any wonder there getting bombed daily?

Snoopy the Economist's picture

So does that mean the Afgani politicians are not on the take yet? Interesting.

OldPhart's picture

Can you imagine the outrage from a politician when his paycheck bounces?

TN Jed's picture

This reminds me of the time I was a child and friends with a really rich kid.  I'm talking HCA rich.  When we got in trouble his parents did nothing while mine whipped my ass.

kchrisc's picture

A nation closer to the Stone Age than most, maybe lower than North Korea, and they can identify and call fraud, fraud. Why? Maybe it has to do with the number of Zionists in the ranks of their government?!" Something to ponder.

An American, not US subject.

 

"Free Steven Cohen!"

 

Conax's picture

They take a dim view of stealing.  It's so backward.  It's just ignorant!

They must be shown how to be free right away.

 

Big Corked Boots's picture

There I was, complaining about how 'Murika was becoming a third-world country. If only...

motorollin's picture

Yeah but our bankers are freedom bankers. We can't jail them!

Atticus Finch's picture

That's because they are envious of our freedom.

Dre4dwolf's picture

Afghanistan is more civilized and has a better justice system than the USA lol....

thats just sad.

Bell's 2 hearted's picture

"AP reports"

 

how long till CNBC reports "AP found quilty of FCC infractions"?

GoldenGeezer's picture

They must have a nailgun shortage in Afghanistan.

yogibear's picture

There are plenty in NYC that should be jailed. Along with the Federal Reserve heads.

11b40's picture

As I and others have posted in the past, Corporations don't commit crimes, people do, and until we start the arrests and trials, nothing changes.  Fines issued to a corporation are an insult.  The stock holders pay those, while having nothing to do with the decisions the criminals in management made.  This needs to be repeated over and over until it becomes drilled into everyone's heads that it is not acceptable.

DarthVaderMentor's picture

Unfortunately Afghanistan isn't as advanced as China where they put them in front of a firing squad.  

buzzsaw99's picture

too bad their name isn't cohen or corzine

MaldelBot's picture

American watches in stunned disbelief at the antics of Honey Boo Boo or whatever minstrel show is on these days- NOT news about Afghani banksters. Doubtful the majority of Americans knows about this, and even so, they wouldnt put the pieces together. 

lasvegaspersona's picture

While bankers may (and it seems often are) poorly behaved, the problem with bank failures is that it wipes out the wealth of individuals.

Now, my belief is that most of that perceived wealth is already gone. The vast pile of paper that is believed to hold the key to goods, services and a prosperous retirement are already hyperinflated and will one day just be gone. Until that day however most people realize that if banks fail it will hurt them. It will impact their 401k, their pension plan and their savings. Much of what banks are doing is done to keep the system afloat. It is a coordinated effort between the TBTF, the government and other parties who hold large sums of the world's debt. All wish it to remain stable and to continue to pay out the benefits promised. It cannot do this of course but until that fact is made real by a major collapse it will be supported.

Today paper is the wealth of people and most nations.

doctor10's picture

It does appear that "our bankers" with "our politicians" have pretty thoroughly asset-stripped the country at this point

http://www.middleclasspoliticaleconomist.com/2013/06/us-median-wealth-on...

which if true, basically means the third world is around the corner.

css1971's picture

the problem with bank failures is that it wipes out the wealth of individuals.

The wealth is already gone long before the bank failure. When the bad investments fail the wealth is wiped out at that point. The bank failure is just an acknowledgement of the loss.

Sorry. That is capitalism. Losses should be carried by the people making risky investments. Not by the rest of society. Look where we are now. So many bad investments that ENTIRE COUNTRIES are being wiped out.

WTFUD's picture

So O'Barry the puppet tool delivered after all; H(opium) and Change. I knew he'd come through for us in the END. s/c

Panic Mode's picture

Well, even China jail failed bankers and corrupt politicians. Only countries like US and UK are still going backwards.

richiebaby's picture

Well, that's what happens when you don't kick 50% up to the new President Mohammad Ashraf Ghani. 
Ghani's going after the Karzai bro's money too

Hamm Jamm's picture

What happened to throwing stones at them till their dead ?       what do you have to do to get some JUSTICE around here  ???????

Infinite QE's picture

Refused to accept opium receipts?

Radical Marijuana's picture

The ruling classes in Nation 1 engineering an inside job, false flag attack upon itself, in order to justify going to war against Nation 2.

Nation 2 has somewhat survived through that, and perhaps learned a thing or two. However, Nation 1 is still integrated into the globalized systems set up by the international ruling classes, whose established systems of enforced frauds have been also able to control most other nations, in order to subsequently bomb the shit out of other nations which were presenting a possible problem to the ruling classes that dominated Nation 1, for instance, Iraq, Libya, etc. ...

The people who control the people that control Nation 1 are getting more criminally insane every day, as is becoming more and more obvious to bigger countries like Russia and China, which Nation 1 also threatens because Nation 1 is controlled to advance the agenda of the international bankers. Since the biggest gangsters ARE those banksters, it is only in minor, fringe countries that there is any partially effective resistance, but those small countries continue to pay an extremely large price for attempting to do that.

Nation 1 is manifesting runaway criminal insanities, while there are barely any actual alternatives, than various alternative criminal insanities. Although, from a sublime perspective, that makes sense, there is nevertheless being set up situations of extreme suffering due to the rise and fall of social control through systems of lies backed by violence, which will eventually drive themselves through mad psychotic breakdowns!

Clesthenes's picture

No, banker justice does not yet exist.

Afghan bankers haven't yet learned to properly spread the loot.

When they learn to spread it to legislators, prosecutors, judges and journalists (and other useful idiots), there'll be no difference between "banana-republic America and banana-republic any other tribe.

Panic Mode's picture

They use honest money and jail failed bankers. Someone must be something right there.

Eahudimac's picture

Nope, Nope. I'm pretty sure the stunned disbelief look is just gas.

Lea's picture

That "too big to fail" system is the worst thing that happened to liberal economies since their inception. A bank goes into heavy debt because of foolhardy investments, it's bailed out by its puppet state with taxpayers money before it crashes, therefore it goes into even more foolhardy investments, knowing it has the full backup of the willing taxpayer.

I should open a bank. Better than any Al Capone scam, risk-free, no way you could lose a penny, and you don't even need a gun. Just a pretty office and some millions of willing suckers who'll vote in your state spokespersons in the hope they will somehow make their life better. Ha!

 

QQQBall's picture

Did they keep their bonuses?

css1971's picture

SEND IN THE FUCKING TROOPS! GET THEM OUT!