A Hostile Bank Takeover - NYTimes.com The government of Bangladesh has played its trump card in its long-running campaign against Grameen Bank and its founder Muhammad Yunus. Last week, legislators passed a law that effectively nationalizes the bank, which pioneered the idea of making small loans to poor women, by wresting control of it from the 8.4 million rural women that own a majority of its shares. Unlike in other countries that have taken over failing banks in recent years, Bangladesh had no compelling reason to seize Grameen, which won the Nobel Peace Prize along with Mr. Yunus in 2006. The bank is not facing a financial crisis and its depositors are not lined up outside its branches demanding their money back. There is little doubt that the only reason the government of Prime Minister Sheikh Hasina passed the new law was to exact revenge for Mr. Yunus's brief foray into politics in 2007, when a caretaker government backed by the military was ruling the country. Under the new law, the government will increase its stake in Grameen to 25 percent, up from 3 percent, and appoint three directors on its 12-member board, including the chairman. The chairman will head a selection committee for the bank's top executive, generating a shortlist of candidates. And the country's central bank will pick the winner. As if that weren't enough, the board will be allowed make decisions at meetings attended by as few as three directors - a blatant ploy to disenfranchise the majority owners of the bank. In addition to being vindictive, the government's obsession with Grameen seems grossly misplaced given Bangladesh's many pressing challenges. What exactly will seizing control of the bank do to help Ms. Hasina reduce poverty, improve the educational system or deal with rising sea levels? But the government seems unconcerned with the real problems of the country. Its assault on Grameen is just the latest in a series of disturbing developments that have shaken Bangladesh ahead of national elections, which are expected to take place in January. In recent months, the police have arrested opposition politicians; a court sentenced 152 border guards to death for a revolt in 2009; and protests by political parties demanding that a caretaker government oversee the election have paralyzed the country.