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Imf Tells Europe To Come Clean On Bank Losses

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http://www.telegraph.co.uk/finance/newsbys...ank-losses.html

"To restore confidence, you need total disclosure of possible losses," said Dominique Strauss-Kahn, the IMF's managing director. "Not only losses which are linked to the original sub-prime crisis, but also the losses linked to the slowdown in the economy, and impaired assets. There are lots of things that still have to be disclosed," he said, adding that credit mechanism remained jammed.

The latest IMF report said the chance to raise fresh bank equity while optimism lasts should be "seized without delay" and demanded a "comprehensive review to assess capital needs and viability."

"Stresses persist, conditions for access to bank lending are tight, funding costs remain high. Sizeable losses lie ahead as the recession unfolds. The financial sector is hamstrung in fulfilling its vital intermediation role."

The IMF says eurozone banks will need to raise a further $375bn (£235bn), compared to $250bn for US banks, and has called for a stress-test along the lines of the US Treasury probe.

There are widespread concerns that Germany in particular is hiding bank problems until after the September elections, using its "bad bank" scheme to keep "zombie institutions" alive.

The eurozone is not yet out of the woods, and risks sliding into a deeper downturn. "Adverse feedback loops between the financial and real sectors could trigger a protracted deflation," said the fund.

Separately, Standard & Poor's cut Ireland's sovereign debt rating to AA on fears that its bank rescues will cost €20bn (£17bn) to €25bn and push the national debt above the danger level of 100pc of GDP. "The rating could be lowered again if asset quality in the Irish banking system deteriorates at a faster pace [or if] the average maturity of the government's debt shortens materially for a sustained period."

Roll up roll up.

Pick a number any number, well any very large number and submit it to the IMF.

It's all guess work the experts haven't a clue what this number could be so lets have a sweep stake and see who gets the nearest. :lol::lol:

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There are widespread concerns that Germany in particular is hiding bank problems until after the September elections, using its "bad bank" scheme to keep "zombie institutions" alive.

Ah, but what does Angela Meerkat care, as long as she gets re-elected?

Sweep bad debts under the carpet and screw the whole of Europe for the next 20 years - et voila' :rolleyes:

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My gues would be about 100 billion.

(Accurate to within +/- 500 billion)

:lol: you should get a job at the ECB, they like that type of logic

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Ah, but what does Angela Meerkat care, as long as she gets re-elected?

Sweep bad debts under the carpet and screw the whole of Europe for the next 20 years - et voila'

Simples!

Gordon Brown could learn a few lessons from Merkel - like have a few intelligent people in government - people with Engineering and Science degrees instead of media studies and political history.

I know - why doesn't he borrow even more money from the future and give us all a windfall tax break next April before he goes to the country ?

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>The latest IMF report said the chance to raise fresh bank equity while optimism lasts should be "seized without delay"

i.e. IMF thinks its a bull trap and the banks should spring it.

VMR.

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>The latest IMF report said the chance to raise fresh bank equity while optimism lasts should be "seized without delay"

i.e. IMF thinks its a bull trap and the banks should spring it.

VMR.

Yep. And the IMF also knows exactly how much is current bank solvency reliant on either government intervention (Asset Protection Scheme in the UK, for instance), changed accountancy rules (mark to model/ 'magination) and a totally irrational equity market.

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Yes, I know I could google it, but could someone briefly explain the IMF's role and remit and how it is that they have the authority to meddle with our economy? They sound very much like the Police of the worldwide economy?

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I know - why doesn't he borrow even more money from the future and give us all a windfall tax break next April before he goes to the country?

That's probably the plan.

Americans have done it, Austrailians have done it. Think NZ have done it too.

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>The latest IMF report said the chance to raise fresh bank equity while optimism lasts should be "seized without delay"

i.e. IMF thinks its a bull trap and the banks should spring it.

VMR.

Yes, I saw that too.

:rolleyes:

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