Crossing Over

U.S. Helps Bail Out Afghan Bank

Sound familiar? In an effort to stall—or even flat-out stop—a financial crisis, the Central Bank of Afghanistan, along with assistance from the United States Treasury Department, made bailout arrangements for Afghanistan’s largest bank on Saturday. The new flow of cash is intended to aid Kabul Bank, which has seen upwards of $200 million withdrawn from accounts as economic fears in the country grow. The Afghan government took out $300 million of its sovereign funds held by the Federal Reserve Bank of New York, but the U.S. did not contribute any money. "No American taxpayer funds will be used to support Kabul Bank," a Treasury Department spokeswoman said. The Afghanistan Banks Association, a commercial-banks conglomerate, called the situation "normal and controlled."