Lebanese bank hostage situation ends after partial payout

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Members of the Lebanese army secure the area near Federal bank in Hamra, Lebanon. (AN PHOTO/FIRAS HAIDAR)
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Crowds gathered outside the Federal Bank of Lebanon as the siege continued. (AN PHOTO/FIRAS HAIDAR)
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Updated 12 August 2022
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Lebanese bank hostage situation ends after partial payout

  • Civilians gather outside bank in support of gunman
  • Bank's lawyer claims efforts under way to reach a negotiated conclusion

Bystanders praised an armed man who held bank staff hostage for hours on Thursday in Beirut because he could not access funds frozen at the bank after the country’s economic collapse.

The hostage situation in a bank in Lebanon’s capital ended after authorities agreed to grant the gunman partial access to his frozen funds in exchange for releasing all the hostages.

The man — 42-year-old Bassam Al-Sheikh Hussein — surrendered to security forces when the bank agreed to give him $30,000 out of his more than $200,000 in trapped savings.

Al-Sheikh Hussein earlier took more than eight employees hostage at Federal Bank in Hamra, Beirut.

He poured gasoline on the floor and pointed a shotgun at employees, demanding the bank let him withdraw $2,000 from his frozen accounts, in accordance with the central bank circulars to all banks in 2019.

Soldiers and officers from the Internal Security Forces surrounded the bank, which is situated on one of the busiest streets leading to the American University of Beirut and its medical center.

Negotiations began between the gunman and the bank’s management, first led by Hassan Mughnieh, the head of Lebanon’s Depositors Association.

They were later joined by the ISF’s information branch in the negotiations.

Caretaker Minister of Interior Bassam Mawlawi’s media office announced that he was following up the negotiations between the information branch and the Federal Bank from the ISF’s operations rooms.

Footage of Al-Sheikh Hussein first appeared on social media platforms, with the gunman shouting demands for his money to be released.

He told bank employees he wanted money to pay for medical bills for his father, who was receiving treatment in a hospital.

One of the bank employees filmed the scene, when the gunman could be seen carrying a gun.

The man entered the bank around 11 a.m. and asked the bank’s customers to leave while keeping the employees and the bank’s branch manager Hassan Halawi inside the building.

Two customers remained inside by accident, while one employee managed to evade capture as he was on duty outside the bank. The employee told Arab News that he was surprised to see the army and ISF surrounding the bank upon his return.

One of the customers taken hostage was released by the gunman, and handed to the Red Cross who were waiting for him, while the other insisted on staying inside “in solidarity with the armed man.”

Hasan Moghnieh, head of the depositors association, who led the negotiations with the armed depositor, told Arab News that he was negotiating with him from behind the metal bars of the bank’s closed gate.

Moghnieh said the armed man seemed calm and was assured by the security agencies that he would not be harmed.

“He is sitting in a chair, and I do not know how he dares to smoke a cigarette near the gasoline,” he added.

Moghnieh added that the gunman initially demanded to withdraw $2,000 to pay for his father’s medical bills at the Al-Zahraa hospitall, but when this was initially refused he demanded the entire $210,000 balance of his account.

On further conversation with the bank's manager, Moghnieh said the gunman was offered $10,000. However, the armed depositor rejected the offer, demanding his entire balance.

“I do not know the armed man in person. However, while negotiating with him, his threats seemed serious as he told me that he will throw the bank manager out of the window. He did not harm the detainees,” Moghnieh added.

Curious onlookers first gathered near the bank, then were joined by the concerned families of the bank employees.

They were later joined by Al-Sheikh Hussein’s family in Beirut, who began negotiating a settlement for him.

Moghnieh said: “The family wants a written undertaking that the ISF would not assault their son, and that they are ready to lower the demand and deduct a decent amount from the deposit.”

He said the bank first suggested $10,000, and when the armed man insisted on withdrawing his entire deposit, there was no more contact between the bank manager and the central management.

Other people, including customers of the bank chanting their support for the armed man: “Down with the rule of the banks,” one of the slogans of 2019’s mass protests.

Activist lawyer Haytham Azzo told Arab News: “We are following up on the events and we had warned that this would be one of the unjust banking procedures’ implications. As lawyers, we are ready to defend Al-Sheikh Hassan for free.”

Azzo said the banks had compromised national security, which was proven by “what we are seeing today.”

He added: “We called for people to be able to withdraw deposits when necessary, and the banks refused.”

The head of the Federation of Syndicates of Banks Employees in Lebanon, George Al-Hajj, earlier said they wanted the incident to end peacefully.

“We will not resort to a strike because it would be useless.”

A statement from the Depositors Association held the bank owners, government, parliament and the central bank responsible for Thursday’s developments.

The association said  “the extortion of depositors and theft of their life savings will lead to further unpredictable responses.”

The association held the judicial authorities responsible for any violence on the streets or in the face of banks, due to its determination to protect the “unjust and aggressor against the oppressed depositor.”

The tense situation in Beirut occurred after Lebanese banks resumed work on Wednesday, following a strike last Monday, in protest against the judiciary’s treatment of banks, in light of the depositors’ proceedings against them.

In a general assembly on Wednesday, the Association of Banks in Lebanon called upon the establishment of a banking court, similar to the financial markets tribunal.

The association also demanded the acceleration of adopting legislation related to a recovery plan, noting demands from the International Monetary Fund.


US says it destroyed 16 mine-laying vessels as Iran threatens to block Gulf oil exports

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US says it destroyed 16 mine-laying vessels as Iran threatens to block Gulf oil exports

DUBAI, United Arab Emirates: The US said it took out more than a dozen mine-laying Iranian vessels Tuesday, and the Islamic Republic vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies.
As concerns grew about the war’s effect on a strategic waterway, the American military said it destroyed 16 minelayers, though President Donald Trump said in social media posts that there were no reports of Iran planting explosives in the Strait of Hormuz, through which 20 percent of the world’s oil is shipped.
The American military released the figure, along with unclassified footage of some of the vessels, after Trump threatened to hit Iran at “a level never seen before” if the country failed to immediately remove any mines it might have deployed in the channel.
Both sides sharpened their rhetoric as the war entered its 11th day. US Defense Secretary Pete Hegseth promised the most intense strikes yet while the Pentagon detailed the broader toll of injuries sustained by US troops.
The conflict’s effects rippled across the Middle East and beyond. Iranian leaders ruled out talks, threatened Trump and launched new attacks against Israel and Gulf Arab countries.
In Iran, residents of Tehran said they experienced some of the war’s heaviest strikes. A woman said she saw a residential building get hit. She and others reached by The Associated Press spoke on condition of anonymity to prevent reprisals. Tens of thousands of Iranians have sought shelter in the countryside.
Lebanon reports more deaths
Multiple Israeli strikes across southern Lebanon killed seven people, the Lebanese Health Ministry said early Wednesday.
Other deaths included a Red Cross member who died early Wednesday after an Israeli strike targeted his team Monday while they were rescuing people following an earlier attack, the health ministry said. On Tuesday, Israeli airstrikes killed four people, including a paramedic who worked for the Hezbollah-affiliated Islamic Health Authority who was treating the wounded.
Also Tuesday, an Israeli strike killed a Lebanese soldier, the Lebanese army said, bringing the number of troops killed there to five since the conflict began.
Israel said it was working to intercept missiles from Iran and Hezbollah, which began firing on Israel after the start of the war.
Saudi Arabia’s Defense Ministry said early Wednesday that it intercepted multiple missiles launched toward several sites, including Prince Sultan Air Base, a major US- and Saudi-operated air facility. The ministry said it also destroyed drones near two major cities and more headed toward the kingdom’s vast Shaybah oil field in the Empty Quarter desert.
In Iraq, drones targeted military bases inside Baghdad International Airport late Tuesday, two security officials told AP on condition of anonymity because they were not authorized to speak to the press. Some drones fell near Iraqi security positions, while others landed near logistical support sites used by US-led coalition forces, one official said.
The United Arab Emirates said early Wednesday that its air defenses were firing at incoming Iranian fire. The wealthy Gulf nation — home to the business and travel hub of Dubai — said Iranian attacks have killed six people and wounded 122 others.
Bahrain sounded sirens early Wednesday, warning of an incoming Iranian attack. The warnings came a day after an Iranian attack hit a residential building in the capital, Manama, and killed a 29-year-old woman and wounding eight people.
Pentagon says 140 US troops wounded since war began
Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said US forces hit more than 5,000 targets.
The Pentagon separately said Tuesday that about 140 US service members have been wounded in the war, and the “vast majority” of the injuries were minor, with 108 service members already back on duty. Eight US service members suffered severe injuries, and seven have been killed.
In Iran, at least 1,230 people have been killed, while the death toll is more than 480 in Lebanon and 12 in Israel, according to officials.
Iran’s leaders have remained defiant after days of heavy strikes targeting the country’s leadership, military, ballistic missiles and its disputed nuclear program. Iran’s parliament speaker, Mohammad Bagher Qalibaf, said on X that Iran was “definitely not looking for a ceasefire.”
“We believe that the aggressor should be punched in the mouth so that he learns a lesson so that he will never think of attacking our beloved Iran again,” he said.
A top Iranian security official, Ali Larijani, posted a warning to Trump, writing on X that “Even those bigger than you couldn’t eliminate Iran. Be careful not to get eliminated yourself.” Iran has been accused of plotting attempts to kill Trump in the past.
The Trump administration, meanwhile, faced growing scrutiny at home about the war.
“I’m not sure what the end game is, or what their plans are,” Democratic Sen. Jacky Rosen of Nevada said after a classified briefing that the Trump administration held Tuesday for some lawmakers.
Saudi Arabia’s oil giant says tankers being rerouted to avoid Strait of Hormuz
Iran has repeatedly targeted energy infrastructure with attacks that appear aimed at generating enough global economic pain to pressure the US and Israel to end their strikes. It has also fired on Israel and US military bases in the region.
The US stock market held steadier Tuesday as Wall Street waited for the next clue on when the war with Iran may end.
Oil prices, meanwhile, remained well below their peaks hit on Monday. Such spikes have been rocking financial markets worldwide because of worries that the war could block the global flow of oil and natural gas for a long time.
Iran’s paramilitary Revolutionary Guard said it “will not allow the export of even a single liter of oil from the region to the hostile side and its partners until further notice.”
Amin Nasser, the president and CEO of Saudi Arabia’s oil giant Aramco, said tankers were being rerouted to avoid the strait, and that the company’s east-west pipeline would reach its full capacity this week of 7 million barrels a day being brought to the Red Sea port of the Yanbu.
“The situation at the Strait of Hormuz is blocking sizable volumes of oil from the whole region,” he said. “If this takes a long time, that will have serious impact on the global economy.”
Foreign nationals get out of region
The UN refugee agency said Tuesday that more than 667,000 people in Lebanon had registered as displaced — an increase of over 100,000 since a day earlier — and more than 85,000 people from Lebanon, mostly Syrians, had entered neighboring Syria.
The British government said the number of commercial flights from the UAE to the UK is returning to normal levels, with 32 flights operated Monday from Dubai to Britain and another 36 scheduled Tuesday. British Airways, however, said it suspended flights to and from Jordan, Bahrain, Qatar, Dubai and Tel Aviv until later this month.
Many foreign nationals have been getting out of the Arabian Gulf region since the war began, including over 45,000 UK citizens, the British Foreign Office said. Some 40,000 people returned to the United States, according to the State Department.