Banker to the Bankers Knows the Numbers Are Lying
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June 29 (Bloomberg) -- The Bank for InternationalSettlements, which acts as a bank for the world’s central banks,should know fudged numbers when it sees them. What may come as asurprise is how openly it has been discussing the problem ofbogus balance sheets at large financial companies.
“The financial sector needs to recognize losses andrecapitalize,” the Basel, Switzerland-based institution said inits latest annual report, released this week. “As we have urgedin previous reports, banks must adjust balance sheets toaccurately reflect the value of assets.” The implication isthat many banks are showing inaccurate numbers now.