As in any farce eventually the comedians have to show their true colors. IMF and eurozone clash over estimates The IMF, believing they are supposed to tell the truth, have discovered that the European banks lie about the true value of their holdings. Why not? Their own regulators don't seem to care that they hold their Greek bonds marked at 80% of face value when they trade at close to 50%.
Furthermore, as we can see from (Spanish finance minister) Elena Salgado, the politicians give the regulators, the auditors, and other overseers good legal cover against future discontent ("Look, the government said it was ok to price Spanish mortgages at par even though we KNEW the chances of recovering 100% were close to zero).
In essence, everything is fair in love, war, and finances. So much for the illusion of a well regulated banking system.
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