In Galling, Pathetic Whine, Deutsche Bank CEO Warns Against Opening "Pandora's Box"

In a galling, pathetic whine, Josef Ackermann, CEO Deutsche Bank warns of "Opening Pandora's Box" if banks have to take responsibility for their poor decisions.

Yahoo! Finance reports Bank lobby rejects reopening of Greek rescue deal

The international bank lobbying group that has been taking a leading role in negotiations on giving debt-ridden Greece easier terms for its bonds on Sunday rejected calls to impose larger losses on private investors.

Forcing private creditors to write down their Greek bond holdings by more than the 21 percent tentatively agreed to in a July deal would quickly cause a "domino effect" that would see the crisis spread to other parts of Europe, warned Josef Ackermann, the outgoing chairman of the Institute of International Finance.

Such a move would ultimately cost taxpayers much more than just bailing out Greece and erode confidence in the euro, warned Ackermann, who is also the CEO of Germany's Deutsche Bank, a major lender to Greece.

Such a move would ultimately cost taxpayers much more than just bailing out Greece and erode confidence in the euro, warned Ackermann, who is also the CEO of Germany's Deutsche Bank, a major lender to Greece.

Germany and other rich eurozone nations have been pushing for a re-negotiation of the July deal, arguing that the economic situation in Greece has significantly deteriorated since then and may require a steeper cut in the country's debt burden.

However, Ackermann quickly rejected that push, saying that the agreement was fair and already placed a heavy burden on banks at a time of major market turmoil.

"If we now start reopening this Pandora's box we will lose a lot of time and I'm not sure people would be willing to participate," Ackermann told a news conference on the sidelines of the annual meeting of the International Monetary Fund.

As noted moments ago in German Banking Group Warns of Contagion, Requests Taxpayers to Take Hit for Stupid Loans Made by Stupid Banks admission that losses on Greek loans will be far greater than 21% is starting to spread.

Ackermann is a Liar

There is no polite way to say it so I may as well be blunt: Josef Ackermann is a liar.

Banks agreed to the 21% haircut in July for one reason and one reason only: It was nowhere near "fair" and banks knew they got off easy.

The only "fair" proposal is for those who make stupid decisions to pay full price for those decisions.

Ackermann wants taxpayer to bail him out. Screw Ackermann. And if Deutche Bank goes under as a result, Ackerman and the entire board should be fired. Indeed the entire banking system would be better off if failed bank executives get shown the door and their pensions set to zero when banks fail.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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