More On The Lebanese-Canadian Bank

Many are suggesting to me that the public “outing” by Washington of the Lebanese Canadian bank is the beginning of a more aggressive way of dealing with the new Lebanese government and the Lebanese financial sector now that Hezbollah is at the helm.

Traditionally, these issues have been dealt with in private between the Lebanese and American governments for two important reasons: 1) Not all of such a bank’s activities are illegal and there’s a likelihood that senior management is not aware of clandestine activities. 2) The public blacklisting of a bank’s name and intense media scrutiny will drive a certain run on the bank (would you keep your money in the Lebanese Canadian bank?), causing bankruptcy and ruin for many people.

This blunt approach by Washington — which was filed using a rarely used clause of the PATRIOT act — could be calculated to act as a deterrent to all other Lebanese banks who might have under-the-table dealings with Hezbollah. Since Hezbollah is part of the Lebanese social fabric, it’s pretty safe to assume that most Lebanese banks can be put under a Washington cross-hair whenever it chooses to do so.

In other words, Washington could be telling us: You want Hezbollah to govern you? Fine, but you can kiss the American nice guy goodbye.