Bank standoff exposes depth of economic despair

BEIRUT — A judge ordered a gunman who took up to 10 hostages at a Beirut bank to force the release of his trapped savings to stay behind bars, apparently a bid to prevent copycats as desperation deepens over Lebanon’s economic meltdown.

A few dozen relatives of Bassam al-Sheikh Hussein briefly closed a major road in Beirut, saying that keeping him in jail breaches an agreement reached Thursday. The 42-year-old food-delivery driver surrendered after a seven-hour standoff in return for getting $35,000 of his money and promises that he would only be questioned then set free. No one was injured.

It was the latest reminder of the pain created by Lebanon’s nearly three-year economic and financial crisis, described by the World Bank as one of the world’s worst since the 1850s. Three-quarters of the population are in poverty, corruption is endemic and many are losing hope for solutions.

Like most people in Lebanon,

Hussein had no access to his money because of banks’ informal controls. Most people can only withdraw small amounts each month. Hussein had $210,000 at Federal Bank in Beirut and struggled to withdraw some to pay his father’s medical bills and other expenses.

Because taking hostages worked to free up some of Hussein’s savings, releasing him without charges could inspire others to follow suit as people face skyrocketing inflation and a lack of job opportunities. Many celebrated him as a hero, but it was not clear if his actions would lead to wider protests against banks.

“They want to send a message to people that this will not pass easily,” Paul Morcos, founder and owner of Justicia Consulting Law firm in Beirut, said about Hussein’s arrest.

The punishment for taking hostages and threatening people with weapons is usually three months to two years in prison but could reach a life sentence if it was for the purpose of getting money, Morcos said.

The international community has demanded reforms to ease Lebanon’s economic crisis, but entrenched political elites, blamed for decades of corruption and mismanagement, have resisted. Talks with the International Monetary Fund have moved slowly as parliament prepares legislation demanded by the IMF for a bailout, including laws on capital controls and those targeting money laundering.