Middle Eastern banks sound despite Gulf Bank bailout
The bailout of Gulf Bank by the Kuwaiti government is not grounds for investor worry in the Middle East, says analyst.
KuwaitÆs Gulf Bank has achieved the questionable honour of being the first Middle Eastern bank to require a government bailout. Stepping in after the bank incurred significant losses from currency derivatives trading, KuwaitÆs central bank bailed out Gulf Bank for an unspecified amount and proceeded to back all deposits held by domestic banks.
The losses prompted the resignation yesterday of Gulf BankÆs chairman, Bassam al-Ghanem, as well as one other board member, according to several media reports in the region....
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