June 30, 2011
If only C. David Ritter had been a central banker, rather than a commercial banker, he could be retiring with praise, rather than facing possible legal liability for following the time-dishonored practice of “extend and pretend,” in which bad loans are treated as if they were just fine.
For that is precisely what Jean-Claude Trichet, the president of the European Central Bank, has successfully demanded be done about Greek national debt.
As the tear gas cleared in Athens this week — and the Greek Parliament agreed to a new round of austerity that will raise unemployment and prolong a debilitating recession that almost certainly will ensure that the latest fiscal targets are missed — the critical concern seemed to be making sure that no financial institution will ever have to admit making a bad loan.
More
No comments:
Post a Comment