Sunday, September 23, 2012

Helpful articles on understanding the Hall-Mark/Sonali Bank scandal

There were two very good articles in this weekend’s The Star magazine explaining the Hall-Mark / Sonali Bank scandal: http://www.thedailystar.net/magazine/2012/09/03/cover.htm. “Looting through Loans” does the best job we’ve seen in actually...
explaining the details of what happened. The article explains how the alleged perpetrators were able to abuse the Letter of Credit import financing system to perpetrate the embezzlement and the use the practice of Inland Bill Purchase to spread the impact throughout the banking sector. The lead article, “A Question of Public Trust” asks why the crime was possible in the first place and points a finger towards the political control of and lack of independence in the banking sector.

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