India's central bank has finally stepped in to prevent Global Trust Bank from losing any more money. The bank, which has been embroiled in problems for years, will be recapitalized through a merger with Oriental Bank of Commerce OBC.
The Reserve Bank of India RBI acted at the weekend to stop a run on Global Trust, closing ATMs and capping withrawals at Rs10,000 $215. The full extent of the bank's problems will remain unclear until the central bank completes its audit, but the size of the losses discovered so far and the suspicion of yet more fraud triggered banking regulations that allowed the central bank to freeze Global...
