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Afghanistan: Run on Kabul Bank Shakes a Fragile Economy

You can see the anxiety over the fate of Afghanistan's economy just by looking at the huge line of depositors gathered furiously outside the headquarters of Kabul Bank in the downtown section of the capital. Hundreds thronged the sidewalks Sunday, spilling into a street wreathed in newly laid coils of concertina wire. Armed security guards tried in vain to tamp down tempers that flared despite reports of a possible bailout being orchestrated by the government with the help of U.S. experts. Occasional scuffles broke out between police and nervous depositors, many of whom arrived in the predawn hours to withdraw funds. (Sunday is a workday in Afghanistan.) Intermittent pleas to the crowds by bank officials for patience and understanding were met with angry variations of the same demand: We want our money back.

The run on Kabul Bank is shaking the country's fragile economy - and fraying what's left of trust in the government. Last week the Central Bank removed Kabul Bank's chairman and chief executive officer after it was learned that the bank had allegedly funneled tens of millions of dollars into risky Dubai property investments and had reportedly given large loans to shareholders with close links to the administration of President Hamid Karzai, including his brother Mahmoud as well as a brother of the country's first Vice President. While complaints over systemic graft have been a common refrain among ordinary Afghans unhappy with their government, the prospect - however real or distant - of personal deposits falling into jeopardy due to alleged insider dealings has struck a sharp chord for many already living on edge in the capital.

"Corruption and nepotism are rotting the system, both public and private," says Aminullah Ahmadi, 20, a university student. After waiting several hours to empty his entire $15,000 account, some of which was going to go toward paying tuition for a school he was attending overseas, the business-management major was told by a friend working inside the bank that he would only be able to withdraw up to $10,000 - if he made it inside the bank building before closing time.

A few shoulders away, Fida Muhammad, 39, the owner of a construction company, fingered prayer beads as he waited to take home his $80,000 life savings, a decision he said he made that morning as the situation appeared to be "getting out of control." He recalled how a few weeks back he allegedly had to pay a $5,000 bribe to have his company's license renewed by the government. "There are no standards in our banking system or our government," he says. "How can we trust anymore?"

Set up with U.S. financial assistance following the Taliban's ouster, the Afghan banking system is young yet already deeply integrated into the country's affairs. Of the country's banks, Kabul Bank controls perhaps 40% of the industry, until last week holding deposits of around $1.3 billion, spread out over 1 million accounts - among them the accounts of some 250,000 public employees. But, according to insiders, toothless oversight by the country's central bank has allowed well-connected business interests to abuse the system. "Everyone knew a year ago - even before that - that Kabul Bank was going to crash," says a top executive at another major private bank. Given Kabul Bank's lopsided role in the country's banking sector, he reckons that a couple of smaller banks with liquidity troubles may also fail if the crisis of confidence deepens. "If in five years [Kabul Bank] can fail so dramatically," he says, "then you have to have doubts and misgivings about others."

The veteran banker, who plans to leave Afghanistan for a more stable financial scene, lays most of the blame at the feet of the Karzai administration. But he also levels sharp criticism at foreign governments and companies for "shirking responsibility to help regulate the banking system" while injecting billions into the country through dubious financial institutions.

Anywhere from $200 million to $250 million has been withdrawn from Kabul Bank's coffers over the past four business days. While details of the rescue effort are not yet clear, the Afghan government maintains it has enough to keep Kabul Bank open and guarantee all depositors' accounts. On Saturday, American officials said the Central Bank had transferred $300 million from its reserves in the U.S. Afghan officials further insist that the media has exaggerated the bank's vulnerability and the sense of panic felt by depositors. The officials say there are reasons other than panic for depositors wanting to withdraw cash. Indeed, the banking crisis has coincided with the end of the month, when people typically withdraw their monthly salaries, and the officials also note the approach of 'Id al-Fitr, a free-spending Muslim holiday that marks the close of Ramadan, the austere month of traditional fasting.

Not that religion makes financial transactions any cleaner. Across the street from Kabul Bank's headquarters, another crowd gathered at the metal gates of a secondary branch for depositors seeking to go on the hajj, the holy pilgrimage to Mecca. They said they had already paid almost $3,000 to make the once-in-a-lifetime journey but that the Ministry of Hajj and Religious Affairs was asking them to pay another $275 to finalize the arrangements. A half-dozen men grumbled that the shortfall must be due to troubles within Kabul Bank. Said Fazluddin, a 70-year-old farmer seated on a bag of concrete mix: "Nothing is sacred here."

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Billboard singles reviews: Taylor Swift, Linkin Park

NEW YORK (Billboard) – If the rest of Taylor Swift's highly anticipated new album is as strong as its finely crafted lead single, then it's a sure bet that her career juggernaut will continue.

"Mine" possesses a vibrant energy that perfectly complements her impassioned vocals. As the artist matures personally and professionally, the song demonstrates that she's successfully making the transition from a teen ingenue writing about high school crushes to a young woman exploring the complexities of adult relationships. Swift is a master at creating memorable lines, and one of the standouts here is, "You made a rebel of a careless man's careful daughter." By no means is "Mine" so heavy that she'll lose any of her legion of young fans, yet there's lyrical substance wrapped in the buoyant melody that shows Swift has the goods to go the distance and continue to broaden her audience.

ARTIST: LINKIN PARK

SINGLE: THE CATALYST (Machine Shop Recordings/Warner Bros. Records)

For the lead single to upcoming fourth album "A Thousand Suns," Linkin Park offers a nearly six-minute anthem of aggression with two distinct parts. "The Catalyst" lets the band dip its toe into electronica in its first half, with rave-ready blips surrounding Chester Bennington's dystopian cries. At the three-minute mark, however, the track morphs into a slow, emotional dirge, with Bennington singing, "Lift me up, let me go," over a beat tailor-made for a stadium's worth of slow claps. "The Catalyst" recalls Muse's epic vocal chants as well as Green Day's political commentary, but Linkin Park creates an original, if a bit awkward, transition from twisty techno to fist-pumping rock. The band's interesting fusion of ideas -- and the fact that "Catalyst" is its first No. 1 debut on Billboard's Rock Songs chart -- proves that Linkin Park still has a few tricks up its sleeve.

ARTIST: USHER FEATURING PITBULL

SINGLE: DJ GOT US FALLIN' IN LOVE (LaFace/Jive Label Group)

After just three weeks, Usher has landed another top 10 and potential No. 1 hit with "DJ Got Us Fallin' in Love." The R&B star's recent chart-topper, "OMG," reminded everyone that he's no stranger to tempo, and here he looks to Max Martin and his frequent collaborator Shellback for some extra heat on the dance floor. Pitbull drops his usual party antics, lending an energizing verse and "Dale!" ad-libs. Though the lyrics are repetitive, they're an accurate reflection of the song's effect on the listener: "Hands up, and suddenly we all got our hands up/No control of my body." Usher's high register fits seamlessly with dance beats, and "DJ Got Us Fallin' in Love" should keep clubgoers moving for months to come.

ARTIST: SUGARLAND

SINGLE: STUCK LIKE GLUE (Mercury Nashville)

Jennifer Nettles and Kristian Bush of Sugarland are poised for a whopping pop crossover with "Stuck Like Glue," which has already achieved the chart milestone of highest Billboard Hot 100 debut (No. 20) for a country duo or group. Co-written with Better Than Ezra's Kevin Griffin and songwriter Shy Carter (Rob Thomas' "Someday"), the song features Bush's brother, Brandon, on accordion and creates a Southern comfort vibe with mass appeal. It also taps into the rising trend of reggae-pop -- from Jason Mraz's "I'm Yours" to Train's "Hey, Soul Sister" and Travie McCoy's "Billionaire" -- that offers a refreshing alternative to the dance-pop hits dominating the airwaves. The song's catchy lyrics should keep "pulling you right back in," and you'll probably tap along to its beat, too.

Corrected: Eminem reclaims top spot on Billboard 200

LOS ANGELES (Billboard) – Eminem's "Recovery" rebounded to No. 1 on the Billboard 200 album chart on Wednesday after two weeks of sitting by in the runner-up slot.

The record climbed back to the top with 133,000 units sold, according to Nielsen SoundScan, down 13 percent from the previous week, but still knocking off last week's No. 1, Arcade Fire's "The Suburbs."

"Recovery" also earned its eighth consecutive week of selling at least 100,000 copies -- its entire chart life. The last time a set sold 100,000 or more in each of its first eight frames was back in November and December of last year, when Andrea Bocelli's "My Christmas" managed the achievement.

Previous to that, the last album with a greater initial start was the "Now 20" compilation, which began with nine consecutive weeks of 100,000 or more in November and December of 2005.

Total sales of "Recovery" also drove past the two million threshold this week to 2.1 million, according to Nielsen SoundScan, marking just the second album to do so this year. It's currently 2010's second-best seller behind Lady Antebellum's "Need You Now" (2.5 million).

At this point last year, no albums had surpassed more than two million in sales -- though seven sold at least one million.

This year, six albums have hit the million mark, with Usher's "Raymond v Raymond" the latest to cross the line. It sold another 15,000 this week.

Arcade Fire's "The Suburbs" dropped to No. 2 in its second week with 52,000 units sold, down 66 percent. With its debut frame perhaps overly weighted with downloads due to sales pricing via Amazon.com's MP3 store, the group's second-week decline comes as no shocker. It fell 74 percent in download sales.

Eminem also moved back to No. 1 on the Digital Songs chart, where his "Love the Way You Lie" (featuring Rihanna) moved up one spot with 254,000 units sold, down 9 percent.

The song replaced last week's No. 1-debuting "Mine" from Taylor Swift, which started with 297,000. This week, "Mine" dropped to No. 4 with 176,000, off 41 percent.

(Editing by Zorianna Kit and Bob Tourtellotte)

Israel picks Gaza war commander as new military chief

JERUSALEM (AFP) – The Israeli cabinet on Sunday confirmed as armed forces chief Major General Yoav Galant, who directed Israel's 2008-2009 Gaza war, the prime minister's office said.

"The government approved his appointment as chief of staff for a period of three years, with a possible extension to four years in exceptional circumstances," it said in a statement.

"Yoav Galant has proved himself in the course of 33 years of service in the front line of the Israel Defence Forces," the statement quoted Prime Minister Benjamin Netanyahu as saying.

He is to take over the post from Lieutenant General Gabi Ashkenazi in February after the latter's term expires. The appointment required approval by the cabinet, which held its regular weekly meeting on Sunday.

Defence Minister Ehud Barak announced his nomination last month in the wake of a controversy over the circulation of a forged document aimed at discrediting Galant that kicked off the so-called "battle of the generals."

The document, which lobbied for Galant's appointment while smearing his rivals and was reportedly prepared by a public relations firm hired by the general, was leaked to a television channel.

Ashkenazi has said no member of the general staff was involved and police found that the document was a fake.

As head of the southern command, Galant oversaw the devastating December 2008-January 2009 war in the Hamas-ruled Gaza Strip that cost the lives of 1,400 Palestinians and 13 Israelis.

A subsequent investigation by the UN Human Rights Council found that both Israel and Palestinian armed groups committed war crimes and possible crimes against humanity during the 22-day offensive aimed at halting rocket attacks from the territory.

Israel slammed the so-called Goldstone report, which it said was biased against the Jewish state.

But following Galant's nomination the Israeli human rights group B'Tselem called for a thorough review of his role in the fighting.

Other leading candidates for the military's top job were Major General Benny Gantz, Ashkenazi's deputy, and Major General Gadi Eizenkot who heads the army's northern command.

"The decision was a hard one," Barak's office quoted him as telling cabinet colleagues before the vote. "All the candidates are worthy, talented, deeply experienced; men of the highest attributes."

Ashkenazi, the current chief of staff, was appointed in February 2007 in the wake of Israel's disastrous 2006 war on the Hezbollah militia in southern Lebanon.

Galant was born on November 8, 1958 in the mixed Arab-Jewish neighbourhood of Jaffa, which now forms part of Tel Aviv.

He joined the navy's Flotilla 13 commando unit, rising through the ranks to become its commander from 1994 to 1997. The unit carried out the May 31 raid on an aid ship bound for Gaza in which nine Turkish activists were killed.

In 2005, Galant was appointed to head Israel's southern command.

He is married with three children and holds a degree in business and financial management.

Pedestrian Death By Car More Likely Among Uninsured, Minorities

FRIDAY, Sept. 3 (HealthDay News) -- Pedestrians hit by a motor vehicle are much more likely to die if they're uninsured or a member of a racial minority than their counterparts who are white or insured, even if they sustain similar injuries, a new study shows.

It also found that minority pedestrians are far more likely than whites to be hit by a vehicle.

"It's a double whammy. Minorities are much more likely to get injured by this mechanism and much more likely to die by this mechanism," senior study author Dr. Adil H. Haider, an assistant professor of surgery at the Johns Hopkins University School of Medicine, said in a university news release.

The researchers analyzed National Trauma Data Bank information on 26,404 people hit by vehicles between 2002 and 2006. Compared to white patients involved in similar crashes, the risk of death was significantly higher for minorities -- 22 percent greater for blacks and 33 percent higher for Hispanics, although they were all treated in emergency rooms.

Uninsured pedestrian victims were 77 percent more likely to die than those with insurance.

The higher death rates among the uninsured and minorities aren't due to greater rates of injury, the researchers stressed.

"Do we treat minorities and the uninsured differently? I don't think so, but we've got to ask the question. We don't actually know what is leading to these disparities," Haider said.

Earlier research has shown that insurance status and race may increase the risk of death due to delays in treatment or unequal care.

In this study, researchers suggested that higher rates of -- or lack of treatment for -- health problems such as obesity, diabetes and hypertension may increase the risk of death among injured minority or uninsured pedestrian victims.

The study appears in the August issue of the journal Surgery.

More information

The American College of Emergency Physicians has more about pedestrian safety.