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Saturday, April 10, 2010

Main US banks cheating on accounts to hide real debt levels

That's what Basque newspaper
Gara reports, citing the Wall Street Journal as source: that the largest US banks (Goldman Sachs, JP Morgan, Morgan-Stanley, Bank of America, Citygroup...) are using creative accountancy (legal but more than dubious) to make their quarterly results look much better than they in fact are. These tricks are exactly the same as those Greece used to hide its real debt and also those used by the ill-fated Lehman Brothers bank.

The effect is that their debt levels are underestimated by c. 42%.

But you know: you can't deceive everybody forever.

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