Banks have been covering up the losses they're going to make on those dodgy Greek bonds. It's a massive scam, a piece of accounting trickery that would rival Enron. And when you have banks losing money, it will devastate the global economy.
The world's accounting standard setter, the International Accounting Standards Board, says European financial institutions should have taken bigger losses on their Greek government bond holdings in recent results announcements, and it says they under-estimated the writedowns by as much as 50 per cent.
Citigroup says banks like BNP Paribas, France's largest bank, Belgium's Dexia and Germany's Commerzbank would have to write off 6.6 billion euros ($9bn) on their Greek government debt if they valued it at market prices.
And of course, it doesn't end there. Just as Enron destroyed accounting firm Andersen, auditors and regulators have come under fire for letting the banks fiddle the books.
This is an accounting rort. It's Enron all over again.
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