Wednesday 28 September 2011

Iran bank managing director quits post - FT.com

The managing director of Bank Melli, Iran’s largest state-owned bank, stepped down on Tuesday as an alleged $2.8bn financial scandal increased pressure on the government of Mahmoud Ahmadi-Nejad.

Mahmoud-Reza Khavari said in a letter addressed to Shamsoddin Hosseini, minister of economy, that “to respect public opinion” he would resign from his post, even though Bank Melli was not directly involved in the scandal, which he described as “this vicious phenomenon”.

The resignation could be a move by Mr Ahmadi-Nejad’s government to ease the pressure on the cabinet, which is loyal to the president, amid rumours that the parliament, which is dominated by conservatives loyal to Iran’s supreme leader Ayatollah Ali Khamenei was going to impeach Mr Hosseini over Iran’s biggest ever financial scandal.

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