Woolf: Toxic debt

The balance sheets of banks are loaded with toxic debt, but are auditors just endorsing the problem, asks Emile Woolf

Ever since the financial markets registered their massive tumble in 2008, when Lehman Brothers was left to drown in its swamp of toxic debts, banks' managements, regulators, rating agencies and auditors have been muttering that banks must rebuild their balance sheets in line with successive Basel capital adequacy criteria.

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