The assault on Iraq's top financial institution stoked fears that insurgents are taking advantage of political deadlock after inconclusive March 7 national elections to try to derail security gains as the US prepares to withdraw its forces by the end of next year.

The 325-member parliament was due to convene Monday, but analysts have said agreement on a new government could still be months away.

Iraqi military spokesman Maj. Gen. Qassim al-Moussawi blamed the attack on al-Qaida in Iraq but said no money had been stolen from the bank, which holds gold deposits as well as US and Iraqi currency.

The violence began with the bombings - which sent plumes of smoke over the city skyline -although there were conflicting reports about the number and nature of the blasts.

The first bomb went off on the road near an electrical generator, al-Moussawi said. Insurgents wearing army uniforms then tried to enter the bank through two entrances, exchanging gunfire with the guards.

AP