That Sinking Feeling.(Argentine economy)

Until last year, Argentina's banking system was viewed as one of the most trustworthy in South America. A decade of economic stability-- underpinned by steady foreign investment and a currency fixed at par with the U.S. dollar--had polished the image of a country that, before 1991, was best known for military dictatorships, hyperinflation and a crumbling, state-run financial system. Foreign banks, including such heavyweights as Citibank, Deutsche Bank and HSBC, flocked to Argentina, and the people gave the newcomers their money. With banks promising to repay savings in U.S. dollars, deposits surged, rising from 4 percent of gross domestic product in 1989 to 28 percent a ...