BEIRUT, Lebanon — Armed clashes between sectarian militias transformed Beirut neighborhoods into a deadly war zone on Thursday, raising fears that violence could fill the void left by the near-collapse of the Lebanese state.
Rival gunmen, chanting in support of their leaders, hid behind cars and dumpsters to fire automatic weapons and rocket-propelled grenades at their rivals. At least six people were killed and 30 wounded. Residents cowered in their homes, and teachers herded children into the hallways and basements of schools to protect them from the shooting.
It was some of the worst violence in years to convulse Beirut, aggravating the sense of instability in a small country already buffeted by devastating political and economic crises and inviting recollections of its civil war that ended more than three decades ago.
Since the fall of 2019, Lebanon’s currency has plummeted more than 90 percent in value, battering the economy and reducing Lebanese who were comfortably middle class to poverty. The World Bank has said Lebanon’s economic collapse could rank among the three worst in the world since the mid-1800s.
Grave fuel shortages in recent months have left all but the wealthiest Lebanese struggling with prolonged power blackouts and long lines at gas stations. The country’s once vaunted banking, medical and education sectors have all suffered profound losses, as professionals have fled to seek livelihoods abroad.
A huge explosion in the port of Beirut last year killed more than 200 people and exposed the results of what many Lebanese see as decades of poor governance and corruption. The Covid-19 pandemic has only aggravated the economic distress and sense of despair.
The fighting on Thursday was part of the continuing fallout from the port explosion.
Two Shiite Muslim parties — Hezbollah, an Iran-backed militant group, and the Amal Movement — had organized a protest calling for the removal of the judge charged with investigating the blast and determining who was responsible.
As the protesters gathered, gunshots rang out, apparently fired by snipers in nearby high buildings, according to witnesses and Lebanese officials, and protesters scattered to side streets, where they retrieved weapons and rejoined the fray.
posts on Twitter, saying that the clashes had been caused by “uncontrolled and widespread weapons that threaten citizens in every time and place,” a reference to Hezbollah’s vast arsenal.
His group accused Hezbollah of exploiting sectarian tensions to derail the port investigation over fears it could be implicated.
Hassan Diab, who, along with his cabinet, resigned after the port explosion.
There had been hope that Mr. Mikati would bring some stability as his new government took shape. But at the same time, tensions over the port investigation grew deeper.
The blast at the port was caused by the sudden combustion of some 2,750 tons of volatile chemicals that had been unloaded into the port years before, but more than a year later no one has been held accountable.
The judge investigating the explosion, Tarek Bitar, has moved to summon a range of powerful politicians and security officials for questioning, which could result in criminal charges against them.
Hezbollah has grown increasingly vocal in its criticism of Judge Bitar, and his inquiry was suspended this week after two former ministers facing charges lodged a legal complaint against him.
Families of the victims condemned the move, with critics saying that the country’s political leadership was trying to shield itself from accountability for the largest explosion in the turbulent country’s history.
On Monday, the judge had issued an arrest warrant for Ali Hussein Khalil, a prominent Shiite member of Parliament and a close adviser to the leader of the Amal party. The warrant leveled serious accusations against Mr. Khalil.
“The nature of the offense,” the document read, is “killing, harming, arson and vandalism linked to probable intent.”
On Tuesday, the Hezbollah leader Hassan Nasrallah issued some of his most scathing criticism of Judge Bitar, accusing him of “politically targeting” officials in his investigation and calling for a protest on Thursday.
When Hezbollah followers joined the protests to call for the judge’s removal, witnesses said, the sniper shots rang out.
Ben Hubbard reported from Beirut, and Marc Santora from London. Reporting was contributed by Hwaida Saad and Asmaa al-Omar from Beirut, and Vivian Yee and Mona el-Naggar from Cairo.
As Jerome H. Powell’s term as the chair of the Federal Reserve nears its expiration, President Biden’s decision over whether to keep him in the job has grown more complicated amid Senator Elizabeth Warren’s vocal opposition to his leadership and an ethics scandal that has engulfed his central bank.
Mr. Powell, whose four-year term as chair expires early next year, continues to have a good chance of being reappointed because he has earned respect within the White House for his aggressive use of the Fed’s tools in the wake of the pandemic recession, people familiar with the administration’s internal discussions said.
But the decision and the timing of an announcement remain subject to an unusually high level of uncertainty, even for a top economic appointment. The White House will most likely announce Mr. Biden’s choice in the coming weeks, but that, too, is tenuous.
The administration is preoccupied with other major priorities, including passing spending legislation and lifting the nation’s debt limit. But the uncertainty also reflects growing complications around Mr. Powell’s renomination. Ms. Warren, Democrat of Massachusetts, has blasted his track record on big bank regulation and last week called him a “dangerous man” to lead the central bank.
Securities and Exchange Commission to investigate whether the transactions amounted to insider trading. “The responsibility to safeguard the integrity of the Federal Reserve rests squarely with him.”
Asked on Tuesday whether he had confidence in Mr. Powell, the president said he did but that he was still catching up on events.
The White House’s decision over Mr. Powell’s future is pending at a critical moment for the U.S. economy. Millions of jobs are still missing compared with before the pandemic, and inflation has jumped higher as strong demand clashes with supply chain disruptions, presenting dueling challenges for the Fed chair to navigate. The Fed’s next leader will also shape its involvement in climate finance policy, a possible central bank digital currency and the response to the central bank’s ethics dilemma.
“This is starting to feel like an incredibly consequential time for the Fed,” said Dennis Kelleher, the chief executive of Better Markets, a group that has been critical of the Fed’s deregulatory moves in recent years and has criticized it for insufficient ethical oversight.
26 transactions, albeit all in broad-based funds. He also noted that Lael Brainard, a Fed governor and a longtime favorite to replace Mr. Powell if he is not reappointed, did not report any transactions year.
“If you’re trying to go above and beyond, and be beyond reproach, not trading is the better option,” Mr. Hauser said.
bought and sold individual stocks, his 2017 disclosures showed. Ms. Brainard herself has in the past made broad-based transactions. It was the Fed’s more expansive role in 2020 that spurred the backlash.
Agencies often need a “wake-up call” to notice evolving problems with their oversight rules, said Norman Eisen, a senior fellow at the Brookings Institution and an ethics adviser in President Barack Obama’s White House.
“My own view is that Chair Powell is pivoting briskly to address the weaknesses in the Fed’s ethics system,” he said.
enabled big banks to become more intertwined with venture capital.
Critics say reappointing Mr. Powell amounts to retaining that more hands-off regulatory approach. And some progressive groups suggest that if Mr. Powell stays in place, Mr. Quarles will feel emboldened to stick around: He has hinted that he might stay on as a Fed governor once his leadership term ends.
That would mean four of seven Fed Board officials — a majority — would remain Republican-appointed. Two other governors — Michelle W. Bowman and Christopher J. Waller — were nominated by President Donald J. Trump.
During Mr. Powell’s Senate testimony last week, Ms. Warren said renominating him as chair meant “gambling that, for the next five years, a Republican majority at the Federal Reserve, with a Republican chair who has regularly voted to deregulate Wall Street, won’t drive this economy over a financial cliff again.”
Even without Ms. Warren’s approval, Mr. Powell would most likely draw enough support to clear the Senate Banking Committee, the first step before the full Senate could vote on his nomination, because of his continued backing from the committee’s Republicans. But having a powerful Democratic opponent whose support the administration needs on other legislative priorities is not helpful.
The Fed chair does have some powerful allies in the administration, including Ms. Yellen, the Treasury secretary. But the decision rests with Mr. Biden.
“I know he will talk to many people and consider a wide range of evidence and opinions,” Ms. Yellen said on CNBC on Tuesday.
HONG KONG — Xu Jiayin was China’s richest man, a symbol of the country’s economic rise who helped transform poverty-stricken villages into urbanized metropolises for the fledgling middle class. As his company, China Evergrande Group, became one of the country’s largest property developers, he amassed the trappings of the elite, with trips to Paris to taste rare French wines, a million-dollar yacht, private jets and access to some of the most powerful people in Beijing.
“All I have and all that Evergrande Group has achieved were endowed by the party, the state and the whole society,” Mr. Xu said in a 2018 speech thanking the Chinese Communist Party for his success.
China is threatening to take it all away.
The debt that powered the country’s breakneck growth for decades is now jeopardizing the economy — and the government is changing the rules. Beijing has signaled that it will no longer tolerate the strategy of borrowing to fuel business expansion that turned Mr. Xu and his company into a real estate powerhouse, pushing Evergrande to the precipice.
Last week, the company, which has unpaid bills totaling more than $300 billion, missed a key payment to foreign investors. That sent the world into a panic over whether China was facing its own so-called Lehman moment, a reference to the 2008 collapse of the Lehman Brothers investment bank that led to the global financial crisis.
struggles have exposed the flaws of the Chinese financial system — unrestrained borrowing, expansion and corruption. The company’s crisis is testing the resolve of Chinese leaders’ efforts to reform as they chart a new course for the country’s economy.
If they save Evergrande, they risk sending a message that some companies are still too big to fail. If they don’t, as many as 1.6 million home buyers waiting for unfinished apartments and hundreds of small businesses, creditors and banks may lose their money.
“This is the beginning of the end of China’s growth model as we know it,” said Leland Miller, the chief executive officer of the consulting firm China Beige Book. “The term ‘paradigm shift’ is always overused, so people tend to ignore it. But that’s a good way of describing what’s happening right now.”
speech accepting an award for his charitable donations.
He went to college and then spent a decade working at a steel mill. He started Evergrande in 1996 in Shenzhen, a special economic zone where the Chinese leader Deng Xiaoping launched the country’s experiment with capitalism. As China urbanized, Evergrande expanded beyond Shenzhen, across the country.
Evergrande lured new home buyers by selling them on more than just the tiny apartment they would get in a huge complex with dozens of identical towers. New Evergrande customers were buying into the lifestyle associated with names like Cloud Lake Royal Garden and Riverside Mansion.
annual report was Wen Jiahong, the brother of China’s vice premier, Wen Jiabao, who oversaw the country’s banks as head of the Central Financial Work Commission.
elite group of political advisers known as the Chinese People’s Political Consultative Conference.
“He could not have gotten so big without the collaboration of the country’s biggest banks,” Victor Shih, a professor of political science at the University of California, San Diego, said of Mr. Xu. “That suggests the potential help of senior officials with a lot of influence.”
Mr. Xu was also a power broker who socialized with the Communist Party’s elite families, according to a memoir by Desmond Shum, a well-connected businessman. In his book, “Red Roulette,” published this month, Mr. Shum recounts a 2011 European wine-tasting and shopping spree in which Mr. Xu took part, along with the daughter of the Communist Party’s fourth-ranking official at the time, Jia Qinglin, and her investor husband.
The party flew to Europe on a private jet, with the men playing a popular Chinese card game called “fight the landlord.” At Pavillon Ledoyen, a Paris restaurant, the party spent more than $100,000 on a wine spree, downing magnums of Château Lafite wines, starting with a vintage 1900 and ending with a 1990. On a trip to the French Riviera, Mr. Xu considered buying a $100 million yacht owned by a Hong Kong mogul, Mr. Shum wrote.
To supercharge Evergrande’s growth, Mr. Xu often borrowed twice on each piece of land that he developed — first from the bank and then from home buyers who were sometimes willing to pay 100 percent of the value of their future home before it was built.
property grew to account for as much as one-third of China’s economic growth. Evergrande built more than a thousand developments in hundreds of cities and created more than 3.3 million jobs a year.
cool down, the damage caused by Evergrande’s voracious appetite for debt became impossible to ignore. There are nearly 800 unfinished Evergrande projects in more than 200 cities across China. Employees, contractors and home buyers have held protests to demand their money. Many fear they will become unwitting victims in China’s debt-reform campaign.
Yong Jushang, a contractor from Changsha in central China, still hasn’t been paid for the $460,000 of materials and work he provided for an Evergrande project that was completed in May. Desperate not to lose his workers and business partners, he threatened to block the roads around the development this month until the money was paid.
“It’s not a small amount for us,” Mr. Yong said. “This could bankrupt us.”
Mr. Yong and others like him are at the heart of regulators’ biggest challenge in dealing with Evergrande. If Beijing tries to make an example out of Evergrande by letting it collapse, the wealth of millions of people could vanish along with Mr. Xu’s empire.
protested on the streets and complained online about delays in construction. The central bank has put Evergrande on notice.
And China’s increasingly nationalistic commentators are calling for the company’s demise. Debt-saddled corporate giants like Evergrande were given the freedom to “open their bloody mouths and devour the wealth of our country and our people until they are too big to fall,” Li Guangman, a retired newspaper editor whose recent views have been given a platform by official state media, wrote in an essay.
Without proper intervention, Mr. Li argued, “China’s economy and society will be set on the crater of the volcano where all may be ignited any time.”
Michael Forsythe reported from New York. Matt Phillips contributed reporting from New York.
“The government can place them under watch and pressure them through their employers or relatives not to make trouble,” said Minxin Pei, a professor of government at Claremont McKenna College who is writing a study of China’s domestic security apparatus.
China has a lot riding on its ability to contain the fallout from an Evergrande collapse. After Xi Jinping, China’s most powerful leader in generations, began his second term in 2017, he identified reining in financial risk as one of the “great battles” for his administration. As he approaches a likely third term in power that would start next year, it could be politically damaging if his government were to mismanage Evergrande.
But China’s problem may be that it controls financial panics too well. Economists inside and outside the country argue that its safeguards have coddled Chinese investors, leaving them too willing to lend money to large companies with weak prospects for repaying it. Over the longer term, though, China’s bigger risk may be that it follows in the footsteps of Japan, which saw years of economic stagnation under the weight of huge debt and slow, unproductive companies.
By not forcefully signaling an Evergrande bailout, the Chinese government is essentially trying to force both investors and Chinese companies to stop channeling money to risky, heavily indebted companies. Yet that approach carries risks, especially if a disorderly collapse upsets China’s legions of home buyers or unnerves potential investors in the property market.
An abrupt default by Evergrande on a wide range of debts “would be a useful catalyst for market discipline, but could also sour both domestic and foreign investor sentiment,” said Eswar Prasad, an economics professor at Cornell University who is a former head of the China division at the International Monetary Fund.
Some global investors worry that Evergrande’s problems represent a “Lehman moment,” a reference to the 2008 collapse of the Lehman Brothers investment bank, which heralded the global financial crisis. Evergrande’s collapse, they warn, could expose other debt problems in China and hit foreign investors, who hold considerable amounts of Evergrande debt, and other property developers in the country.
BARCELONA, Spain — In the spring of 2019, an emissary of Catalonia’s top separatist leader traveled to Moscow in search of a political lifeline.
The independence movement in Catalonia, the semiautonomous region in Spain’s northeast, had been largely crushed after a referendum on breaking away two years earlier. The European Union and the United States, which supported Spain’s effort to keep the country intact, had rebuffed the separatists’ pleas for support.
But in Russia, a door was opening.
In Moscow, the emissary, Josep Lluis Alay, a senior adviser to the self-exiled former Catalan president Carles Puigdemont, met with current Russian officials, former intelligence officers and the well-connected grandson of a K.G.B. spymaster. The aim was to secure Russia’s help in severing Catalonia from the rest of Spain, according to a European intelligence report, which was reviewed by The New York Times.
recordings revealed a Russian plot to covertly finance the hard-right League party. In Britain, a Times investigation uncovered discussions among right-wing fringe figures about opening bank accounts in Moscow. And in Spain, the Russians have also offered assistance to far-right parties, according to the intelligence report.
Whether Mr. Alay knew it or not, many of the officials he met in Moscow are involved in what has become known as the Kremlin’s hybrid war against the West. This is a layered strategy involving propaganda and disinformation, covert financing of disruptive political movements, hacking and leaking information (as happened in the 2016 U.S. presidential election) and “active measures” like assassinations meant to erode the stability of Moscow’s adversaries.
It is unclear what help, if any, the Kremlin has provided to the Catalan separatists. But Mr. Alay’s trips to Moscow in 2019 were followed quickly by the emergence of a secretive protest group, Tsunami Democratic, which disrupted operations at Barcelona’s airport and cut off a major highway linking Spain to northern Europe. A confidential police report by Spain’s Guardia Civil, obtained by The Times, found that Mr. Alay was involved in the creation of the protest group.
Unit 29155, which has been linked to attempted coups and assassinations in Europe, had been present in Catalonia around the time of the referendum, but Spain has provided no evidence that they played an active role.
Many Catalan independence leaders have accused the authorities in Madrid of using the specter of Russian interference to tarnish what they described as a grass-roots movement of regular citizens. The referendum was supported by a fragile coalition of three political parties that quickly dissolved over disputes about ideology and strategy. Even as some parties pushed for a negotiated settlement with Madrid, Mr. Puigdemont, a former journalist with a Beatles-like mop of hair, has eschewed compromise.
Asked about the Russian outreach, the current Catalan government under President Pere Aragones distanced itself from Mr. Puigdemont.
railed against the “silence of the main European institutions.”
The European Union declared the Catalan independence referendum illegal. Russia’s position, by contrast, was more equivocal. President Vladimir V. Putin described the Catalan separatist drive as Europe’s comeuppance for supporting independence movements in Eastern Europe after the fall of the Soviet Union.
“There was a time when they welcomed the collapse of a whole series of governments in Europe, not hiding their happiness about this,” Mr. Putin said. “We talk about double standards all the time. There you go.”
In March 2019, Mr. Alay traveled to Moscow, just weeks after leaders of the Catalan independence movement went on trial. Three months later, Mr. Alay went again.
In Russia, according to the intelligence report, Mr. Alay and Mr. Dmitrenko met with several active foreign intelligence officers, as well as Oleg V. Syromolotov, the former chief of counterintelligence for the Federal Security Service, Russia’s domestic intelligence agency, who now oversees counterterrorism as a deputy minister at the Russian foreign ministry.
Mr. Alay denied meeting Mr. Syromolotov and the officers but acknowledged meeting Yevgeny Primakov, the grandson of a famous K.G.B. spymaster, in order to secure an interview with Mr. Puigdemont on an international affairs program he hosted on Kremlin television. Last year, Mr. Primakov was appointed by Mr. Putin to run a Russian cultural agency that, according to European security officials, often serves as a front for intelligence operations.
“Good news from Moscow,” Mr. Alay later texted to Mr. Puigdemont, informing him of Mr. Primakov’s appointment. In another exchange, Mr. Dmitrenko told Mr. Alay that Mr. Primakov’s elevation “puts him in a very good position to activate things between us.”
Mr. Alay also confirmed meeting Andrei Bezrukov, a decorated former officer with Russia’s foreign intelligence service. For more than a decade, Mr. Bezrukov and his wife, Yelena Vavilova, were deep cover operatives living in the United States using the code names Donald Heathfield and Tracey Foley.
It was their story of espionage, arrest and eventual return to Russia in a spy swap that served as a basis for the television series “The Americans.” Mr. Alay appears to have become close with the couple. Working with Mr. Dmitrenko, he spent about three months in the fall of 2020 on a Catalan translation of Ms. Vavilova’s autobiographical novel “The Woman Who Can Keep Secrets,” according to his encrypted correspondence.
Mr. Alay, who is also a college professor and author, said he was invited by Mr. Bezrukov, who now teaches at a Moscow university, to deliver two lectures.
Mr. Alay was accompanied on each of his trips by Mr. Dmitrenko, 33, a Russian businessman who is married to a Catalan woman. Mr. Dmitrenko did not respond to requests for comment. But Spanish authorities have monitored him and in 2019 rejected a citizenship application from him because of his Russian contacts, according to a Spanish Ministry of Justice decision reviewed by The Times.
The decision said Mr. Dmitrenko “receives missions” from Russian intelligence and also “does different jobs” for leaders of Russian organized crime.
A Political Tsunami
A few months after Mr. Alay’s trips to Moscow, Catalonia erupted in protests.
A group calling itself Tsunami Democratic occupied the offices of one of Spain’s largest banks, closed a main highway between France and Spain for two days and orchestrated the takeover of the Barcelona airport, forcing the cancellation of more than a hundred flights.
The group’s origins have remained unclear, but one of the confidential police files stated that Mr. Alay attended a meeting in Geneva, where he and other independence activists finalized plans for Tsunami Democratic’s unveiling.
Three days after Tsunami Democratic occupied the Barcelona airport, two Russians flew from Moscow to Barcelona, the Catalan capital, according to flight records obtained by The Times.
One was Sergei Sumin, whom the intelligence report describes as a colonel in Russia’s Federal Protective Service, which oversees security for Mr. Putin and is not known for activities abroad.
The other was Artyom Lukoyanov, the adopted son of a top adviser to Mr. Putin, one who was deeply involved in Russia’s efforts to support separatists in eastern Ukraine.
According to the intelligence report, Mr. Alay and Mr. Dmitrenko met the two men in Barcelona for a strategy session to discuss the independence movement, though the report offered no other details.
Mr. Alay denied any connection to Tsunami Democratic. He confirmed that he had met with Mr. Sumin and Mr. Lukoyanov at the request of Mr. Dmitrenko, but only to “greet them politely.”
Even as the protests faded, Mr. Puigdemont’s associates remained busy. His lawyer, Mr. Boye, flew to Moscow in February 2020 to meet Vasily Khristoforov, whom Western law enforcement agencies describe as a senior Russian organized crime figure. The goal, according to the report, was to enlist Mr. Khristoforov to help set up a secret funding channel for the independence movement.
In an interview, Mr. Boye acknowledged meeting in Moscow with Mr. Khristoforov, who is wanted in several countries including Spain on suspicion of financial crimes, but said they only discussed matters relating to Mr. Khristoforov’s legal cases.
By late 2020, Mr. Alay’s texts reveal an eagerness to keep his Russian contacts happy. In exchanges with Mr. Puigdemont and Mr. Boye, he said they should avoid any public statements that might anger Moscow, especially about the democracy protests that Russia was helping to disperse violently in Belarus.
Mr. Puigdemont did not always heed the advice, appearing in Brussels with the Belarusian opposition and tweeting his support for the protesters, prompting Mr. Boye to text Mr. Alay that “we will have to tell the Russians that this was just to mislead.”
Despite the chaotic end to its presence in Afghanistan, the United States still has control over billions of dollars belonging to the Afghan central bank, money that Washington is making sure remains out of the reach of the Taliban.
About $7 billion of the central bank’s $9 billion in foreign reserves are held by the Federal Reserve Bank of New York, the former acting governor of the Afghan central bank said Wednesday, and the Biden administration has already moved to block access to that money.
The Taliban’s access to the other money could also be restricted by the long reach of American sanctions and influence. The central bank has $1.3 billion in international accounts, some of it euros and British pounds in European banks, the former official, Ajmal Ahmady, said in an interview on Wednesday. Remaining reserves are held by the Swiss-based Bank for International Settlements, he added.
Mr. Ahmady said earlier on Wednesday that the Taliban had already been asking central bank officials about where the money was.
International Monetary Fund said on Wednesday that it would block Afghanistan’s access to about $460 million in emergency reserves. The decision followed pressure from the Biden administration to ensure that the reserves did not reach the Taliban.
Money from an agreement reached in November among more than 60 countries to send Afghanistan $12 billion over the next four years is also in doubt. Last week, Germany said it would not provide grants to Afghanistan if the Taliban took over and introduced Shariah law, and on Tuesday, the European Union said no payments were going to Afghanistan until officials “clarify the situation.”
The central bank money and international aid, essential to a poor country where three-quarters of public spending is financed by grants, are powerful leverage for Washington as world leaders consider if and when to recognize the Taliban takeover.
Mr. Ahmady, who fled Afghanistan on Sunday, said he believed the Taliban could get access to the central bank reserves only by negotiating with the U.S. government.
high-profile talks last month. But so far, China hasn’t shown an eagerness to increase its role in Afghanistan. The Taliban could try to take advantage of the country’s vast mineral resources through mining, or finance operations with money from the illegal opium trade. Afghanistan is the world’s largest grower of poppy used to produce heroin, according to data from the United Nations Office on Drugs and Crime.
But these alternatives are all “very tough,” Mr. Ahmady said. “Probably the only other way is to negotiate with the U.S. government.”
Afghanistan has about $700 million at the Bank for International Settlements, Mr. Ahmady said. The bank, which serves 63 central banks around the world, said on Wednesday that it “does not acknowledge or discuss banking relationships.”
On Wednesday, Mr. Ahmady wrote on Twitter that Afghanistan had relied on shipments of U.S. dollars every few weeks because it had a large current account deficit, a reflection of the fact that the value of its imports are about five times greater than its exports.
Those purchases of imports, often paid in dollars, could soon be squeezed.
“The amount of such cash remaining is close to zero due a stoppage of shipments as the security situation deteriorated, especially during the last few days,” Mr. Ahmady wrote.
He recalled receiving a call on Friday saying the country wouldn’t get further shipments of U.S. dollars. The next day, Afghan banks requested large amounts of dollars to keep up with customer withdrawals, but Mr. Ahmady said he had to limit their distribution to conserve the central bank’s supply. It was the first time he made such a move, he said.
Mr. Ahmady said that he had told President Ashraf Ghani about the cancellation of currency shipments, and that Mr. Ghani had then spoken with Secretary of State Antony J. Blinken. Though further shipments were approved “in principle,” Mr. Ahmady said, the next scheduled shipment, on Sunday, never arrived.
their origin story and their record as rulers.
Who are the Taliban leaders? These are the top leaders of the Taliban, men who have spent years on the run, in hiding, in jail and dodging American drones. They are emerging now from obscurity, but little is known about them or how they plan to govern.
The New York Fed provides safekeeping and payment services to foreign central banks so they can store international reserves securely, and to facilitate cross-border payments and other dollar-based transactions. International reserves often take the form of short-term Treasury bonds or gold. The New York Fed has been storing gold for foreign governments for nearly a century.
Though Mr. Ahmady has left the country, he said he believed that most members of the central bank’s staff were still in Afghanistan.
If the Taliban can’t gain access to the central bank’s reserves, it will probably have to further limit access to dollars, Mr. Ahmady said. This would help start a cycle in which the national currency will depreciate and inflation will rise rapidly and worsen poverty.
“They’re going to have to significantly reduce the amount that people can take out,” Mr. Ahmady said. “That’s going to hurt people’s living standards.”
The more than $400 million from the International Monetary Fund, which the Biden administration has sought to keep out of the Taliban’s hands, is Afghanistan’s share of a $650 billion allocation of currency reserves known as special drawing rights. It was approved this month as part of an effort to help developing countries cope with the coronavirus pandemic.
But the toppling of Afghanistan’s government and a lack of clarity about whether the Taliban will be recognized internationally put the I.M.F. in a difficult position.
“There is currently a lack of clarity within the international community regarding recognition of a government in Afghanistan, as a consequence of which the country cannot access S.D.R.s or other I.M.F. resources,” the organization said in a statement Wednesday. It added that its decisions were guided by the views of the international community.
Jake Sullivan, the White House’s national security adviser, said Tuesday that it was too soon to address whether the United States would recognize the Taliban as the legitimate power in Afghanistan.
“Ultimately, it’s going to be up to the Taliban to show the rest of the world who they are and how they intend to proceed,” Mr. Sullivan said. “The track record has not been good, but it’s premature to address that question at this point.”
The suits are returning to the office. In chinos. And sneakers. And ballet flats.
As Wall Street workers trickle back into their Manhattan offices this summer, they are noticeable for their casual attire. Men are reporting for duty in polo shirts. Women have stepped down from the high heels once considered de rigueur. Ties are nowhere to be found. Even the Lululemon logo has been spotted.
The changes are superficial, but they hint at a bigger cultural shift in an industry where well-cut suits and wingtips once symbolized swagger, memorialized in popular culture by Gordon Gekko in the movie “Wall Street” and Patrick Bateman in the film adaptation of Bret Easton Ellis’s novel “American Psycho.” Even as many corporate workplaces around the country relaxed their dress codes in recent years, Wall Street remained mostly buttoned up.
relax dress codes — including in 2019, when Goldman made suits and ties optional — banking had been one of the last bastions of formal work wear, alongside law firms. And in some quarters of Wall Street, such as hedge funds, the code has typically been more permissive.
But in banking, the strict hierarchies were embedded in unwritten fashion rules. Colleagues would ridicule those wearing outfits considered too flashy or too shabby for the wearer’s place in the corporate food chain. Superiors were style guides, but wearing something swankier than one’s boss was considered a faux pas. An expensive watch could be seen as a mark of success, an obnoxious flex, or both.
TV interview; Goldman’s boss, David Solomon, D.J.s in T-shirts on weekends; and Rich Handler, the head of Jefferies, posted a photo of himself sporting a henley tee on Twitter. At an event welcoming employees back to the office in July, Citigroup’s Jane Fraser — the only female boss of a major Wall Street bank — kept her signature look: a jewel-toned dress.
known for its leather-soled dress shoes for men and boys. “It’s going to continue to get more comfortable and casual, but people are still going to want to look nice.”
Now, 80 percent of the shoes his company designs are casual styles, Mr. Florsheim said, compared with 50 percent before the pandemic.
compete for recruits with technology companies — which are friendlier both to remote work and casual clothing — they are seeking to present a less stuffy image. Many banks are also trying to hire a more diverse cohort.
John C. Williams, president of the Federal Reserve Bank of New York and an avowed sneakerhead, said the Fed wanted people to bring their “authentic self” to work because personal style was an important part of valuing all forms of individuality and diversity.
He said he was looking forward to wearing new pairs from his sneaker collection in the office. “When people can be themselves, they do their best work,” he said.
bring staff back to offices. Most of the industry was targeting Labor Day for a full-scale return, although that may be complicated by surging coronavirus cases. Some Wall Street employees have been working out of their offices for months, but many returned only recently for the first time since the outbreak began.
It felt like the first day of school, some bankers said. They wanted to look good in front of colleagues, yet couldn’t bear the thought of wearing dress shoes or heels. Before going in, some checked with friends to see if their choices were in line with the crowd.
One item that has been popular among Wall Street men is Lululemon’s ABC pant, which the athleisure company markets as a wrinkle-resistant, stretchy polyester garment suitable for “all-day comfort.” (The company put its highly recognizable logo on a tab near the pocket to make the pants look less like workout gear.)
Untuckit, the maker of short-hemmed button-downs, saw a jump in sales as vaccination rates across the United States rose in April and May, said Chris Riccobono, the company’s founder. Customers have flocked to its two stores in Manhattan, seeking still-sharp shirts made from breathable fabric.
“What’s amazing is these guys were wearing suits in the middle of summer, walking the streets of New York, coming off the train” before the pandemic, Mr. Riccobono said. “It took corona for the guys who never wore anything but suits to realize, ‘Wait a second.’”
The coronavirus pandemic and a huge explosion in the port of Beirut last August further devastated the economy.
Estimates put the central bank’s losses at $50 billion to $60 billion. The International Monetary Fund has offered assistance, but Lebanese officials accuse Mr. Salameh of blocking an audit sought by the United States and other countries that would unlock I.M.F. aid, as well as a separate investigation into alleged fraud at the central bank.
Most Lebanese have said goodbye to whatever savings they had while the currency has crashed, reducing salaries once worth $1,000 a month to about $80. The central bank is burning through its reserves, spending about $500 million per month to subsidize imports of fuel, medicine and grain.
“Lebanon has been living on borrowed time, and now the chickens have come home to roost,” said Toufic Gaspard, a Lebanese economist and former adviser at the I.M.F. “The whole banking system has collapsed, and we have become a cash economy.”
The crash has soured many Lebanese on their once celebrated central banker.
“I can’t say anything good about Riad Salameh,” said Toufic Khoueiri, a co-owner of a popular kebab restaurant, while having lunch with a friend in Beirut. “Our money is not stuck in the banks, but simply stolen.”
His friend, Roger Tanios, a lawyer, said he had once admired Mr. Salameh for keeping Lebanon financially stable but had changed his mind.
Mr. Salameh, he said, had gone spectacularly off course.
“Every country has its mafia,” Mr. Tanios said. “In Lebanon, the mafia has its country.”
Ben Hubbard reported from Beirut, and Liz Alderman from Paris. Hwaida Saad contributed reporting from Beirut, and Asmaa al-Omar from Istanbul.
BOGNOR REGIS, England — Little has changed in the 40 years that Jean Sheppard has been calling numbers at Crown Bingo here in the heart of Bognor Regis, one of Britain’s oldest seaside resort towns, about 60 miles south of London. The regulars still line up before the doors open at 11 a.m., hoping to nab their upholstered seat of choice in a converted cinema built in the ’30s.
When the games begin, there are no distractions.
“We had an elderly lady here once whose family came to tell her that her husband had passed away,” Ms. Sheppard recalled recently. “And this woman said, ‘Well, there’s nothing I can do for him now,’ and kept right on playing.”
The other constant over the years is the decline of Bognor Regis. Like most of the country’s seaside resorts, the town’s heyday in the ’50s and ’60s is the stuff of dim memories. Bognor and its many rival destinations — Brighton, Hastings, Margate, Skegness, Blackpool and others — once thronged with summer travelers who packed the beaches, seafood shacks and amusement arcades in search of a good time and, for those lucky enough to encounter a cloudless sky, a tan.
Then in the 1970s came the rise of cheap jet travel and overseas package tours. For the same price as a trip here, a family could fly to the beaches of Spain, where blazing sunshine was essentially guaranteed. The resort towns of Britain went into an economic free fall from which they have never recovered.
“Pubs have shut down, theaters have shut down, lots of buildings were knocked down,” said Ms. Sheppard, speaking after her shift on Sunday evening. “There’s been talk about regeneration for years, but nobody seems to know how to do it.”
Now, the limitations imposed by the pandemic are succeeding where all else has failed — at least for the moment. Government-imposed air travel restrictions and warnings have curbed the national appetite for overseas trips. Brits are still allowed to fly to Spain, and elsewhere in Europe, but unless you’re heading to Gibraltar — where infection rates are low — you must quarantine for 10 days after returning home and pay for two Covid-19 tests.
This past week, the British health secretary, Matt Hancock, said the policy would soon be revisited and liberalized. That good news was offset by Chancellor Angela Merkel of Germany and Prime Minister Emmanuel Macron of France, who on Thursday urged all countries in the European Union to require British travelers to quarantine upon arrival.
So towns like Bognor Regis are getting a second look. There were more than 180 new players last week at Crown Bingo, said Jenny Barrett, the assistant manager. And for the first time in decades, hotels here are reporting occupancy rates well above 90 percent.
“This weekend we’re at 95 percent,” said André Gonçalves, a manager at the Beachcroft Hotel. “And our prices are up about 20 to 30 percent.”
The owner of the mini golf course right next to the beach-side promenade, Paul Tiernan, is relishing the payoff from a renovation during the height of the pandemic. He refurbished and cleaned the whole course, in part because during lockdown there was nothing else to do. Lately, on weekends there has been a waiting line that extends around the corner and down the street.
“British seasides are having a massive renaissance, everywhere you go,” he said. “Everyone is just filling their boots.”
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Mr. Tiernan sat in a chair near the edge of the first hole of his course, directly in the line of fire of any overzealous putters. He moved to Bognor Regis 50 years ago, as a child, which makes him just old enough to have glimpsed the last vestiges of the town’s halcyon days.
“There was a pier over there,” he said, pointing across the street. “Honest to God, it was beautiful. Right at the end there was a pavilion. And there was a theater there.”
Today, the pier is short and looks hazardous. Across a different street stands an empty lot with nothing but debris from a building that burned down four years ago under what Mr. Tiernan called dubious circumstances.
It’s all a long slide from the days when Bognor was prestigious enough to serve as a place for King George V, Queen Elizabeth’s grandfather, to convalesce after lung surgery in 1929. The royal connection was memorialized when “Regis,” Latin for “of the King,” was added to the town’s name. But its most famous link to the monarchy is the story — surely as false as it is amusing — that his last words were an alliterative, impolite put-down of Bognor, uttered after aides suggested that he’d soon be well enough to return. (Polite version: “I don’t want to go to Bognor.”)
James Joyce left behind kinder impressions after a stay here in 1923. “The weather is very fine and the country here restful,” he wrote to a patron. Joyce scholars believe he picked up the improbable name of the lead character of “Finnegans Wake,” Humphrey Chimpden Earwicker, from a nearby cemetery.
The flow of out-of-towners picked up when entrepreneur Billy Butlin opened his second Butlin’s Holiday Camp here in 1960, bringing his vision of a family vacation, filled with vigorous activities and all-inclusive buffets, to the south of the country. Today, the Butlin’s here is one of only three originals still in operation, and it is curiously walled off from the rest of town. A fence stands between the ocean and the Butlin’s campus, which features a gleaming, massive structure that looks like a circus tent from the future.
The logic of a beachside holiday camp with little access to the beach, designed around indoor amusements, seems baffling. Until it starts raining, which it did often last weekend. Bognor boasts that it’s the sunniest place in the United Kingdom, a title claimed by other towns as well. Even when it’s sunny, though, the beach here is not exactly inviting. It’s made of small stones, which are comfortable to lay atop only if you bring a futon.
The water rarely gets much above 60 degrees, a temperature described by the National Center for Cold Water Safety as “very dangerous.”
“We all have wet suits,” said Sara Poffenberger, a Brit who was toweling off with her son and grandson. “But lots of British people will swim without wet suits and tell you the water is boiling.”
The beaches here helped Bognor Regis earn the title of worst U.K. seaside resort in a 2019 survey of 3,000 holidaymakers. Bognor and the fellow bottom dweller Clacton-on-Sea received low ratings for their “attractions, scenery, peace and quiet and value for the money,” the publication found.
Reviews like this explain why even optimists believe Bognor’s boomlet is unlikely to last. Business owners here understand that they are banking the upsides of what could most charitably be described as exceptional circumstances. Someday soon, normal will return.
“Next year, every man and his dog will go abroad,” Mr. Tiernan said, sitting at his mini golf course. “But next year is next year, so I’m enjoying the moment.”
“It’s gone from feeling super lonely and now it’s feeling pretty normal,” Mr. Gray added.
Wall Street and the banking sector are pillars of the city’s economy, and they have been among the most aggressive industries in prodding employees to go back to the office. James Gorman, the chief executive of Morgan Stanley, told investors and analysts this month that “if you want to get paid in New York, you need to be in New York.”
Many firms, including Blackstone and Morgan Stanley, have huge real estate holdings or loans to the industry, so there is more than civic pride in their push to get workers to return. Technology companies like Facebook and Google are increasingly important employers as well as major commercial tenants, and they have been increasing their office space. But they have been more flexible about letting employees continue to work remotely.
Google, which has 11,000 employees in New York and plans to add 3,000 in the next few years, intends to return to its offices in West Chelsea in September, but workers will only be required to come in three days a week. The company has also said up to 20 percent of its staff can apply to work remotely full time.
The decision by even a small slice of employees at Google and other companies to stay home part or all of the week could have a significant economic impact.
Even if just 10 percent of Manhattan office workers begin working remotely most of the time, that translates into more than 100,000 people a day not picking up a coffee and bagel on their way to work or a drink afterward, said James Parrott, an economist with the Center for New York City Affairs at the New School.
“I expect a lot of people will return, but not all of them,” he said. “We might lose some neighborhood businesses as a result.”
The absence of white-collar workers hurts people like Danuta Klosinski, 60, who had been cleaning office buildings in Manhattan for 20 years. She is one of more than about 3,000 office cleaners who remain out of work, according to Denis Johnston, a vice president of their union, Local 32BJ of the Service Employees International Union.