Although the resignation letter of Peter Doyle, who was an advisor to the IMF’s European Departments, which is running the rescue programs for Greece, Ireland, and Portugal, is more terse that Greg Smith’s resignation from Goldman via a New York Times op ed, it is no less devastating.
Doyle, a 20 year veteran, excoriates the IMF for failing to provide warnings of the Eurocrisis despite its “long gestation period”. He slams the Fund for becoming more cautious and blinkered.
And the disconcerting thing about this letter is the IMF is the least bad member of the Troika, as least as far as the Euromess is concerned. The IMF was opposed to having the Irish people being saddled with debts incurred by banks that didn’t have state guarantees, but was end run by the ECB, Geither (whose comments at on a G7 conference call seem to have had some sway) and head of Ireland’s central bank, who also happened to be on an ECB board and one might assume chose to sell out his countrymen in the hopes of improving his career standing outside Ireland. Note that contrary to what took place in Ireland, in which no bank bondholders took a hit, Spanish depositor-stuffees who were encouraged to buy preference shares, a form of equity, will see those holding wiped out, and bondholders will be crammed down.
I suggest you read this short letter in full (hat tip Philip Pilkington):