Bank Stock Maneuvers and Political Backing
Yazdani allegedly used a tactic involving postdated checks without sufficient funds. These checks were not immediately bounced due to his influence over bank managers—secured through bribery and political pressure—allowing him to buy large stock holdings without having liquid capital upfront.
When Hassan Ali Mehran, then Governor of the Central Bank, discovered the practice, he alerted Prime Minister Amir Abbas Hoveida. Rather than sanction Yazdani, Hoveida reportedly suggested that he focus on the meat industry instead. Shortly afterward, the judiciary sent Mehran a stern letter questioning why he was interfering with “a hardworking entrepreneur” like Yazdani.
In one famous anecdote, after receiving this official protection, Yazdani went to Hoveida’s office and told the prime minister’s secretary: “Tell your boss I bought the bank!” This blunt declaration captured the swagger and audacity for which he became known.
The acquisition of Bank Iranian highlighted his power. When Azar Ebtehaj, a board member, discovered that Yazdani had secretly purchased 28% of the bank’s shares, he appealed to Ayadi to intervene. Ayadi refused, saying, “The money Yazdani pays is enough.” Ultimately, the Shah himself mediated the dispute, and Yazdani bought Ebtehaj’s shares at three times the market price.
