When
Duvvuri Subbarao described foreign banks as “fair-weather friends”, it
was not clear what was the trigger. Nearly two years later, his
successor Raghuram Rajan has provided the answer. During the peak of the
credit crisis, the CEO of a foreign bank from New York called up its
India head to transfer all funds to headquarters. Thankfully, when the
local head consulted the RBI, he was told not to do so. They may just
remain fair-weather friends.
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