“There are still some important losses that have not been unveiled. It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States.”
-Dominique Strauss-Kahn, International Monetary Fund’s chief
Today’s WTF quote comes to us from France, where the head of the IMF is worried about losses hidden on banks balance sheets. This is due in large part to the suspension of Mark-to-Market and the current accounting principles of Mark-to-Make Believe.
“Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund’s chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday.
In an interview with French newspaper Le Figaro, Strauss-Kahn also said the IMF thought the euro currency was probably a bit too strong.
“There are still some important losses that have not been unveiled,” Strauss-Kahn was quoted as saying in response to a question on banks, according to excerpts of the interview that were sent to media ahead of publication on Wednesday.”
I’ll try to pull the full interview when it is published . . .
Half of banks’ losses may be unknown: IMF chief
Reuters, Nov 24, 2009 3:01pm EST