Scandal At The IMF: Senior Economist Resigns, Says "Ashamed To Have Had Any Association With Fund At All"

Tyler Durden's picture

The rats everywhere are now jumping furiously off the titanic, but few had taken the time to write a letter explaining in detail just how cracked and broken the hull really was. This has now changed, with the departure of Peter Doyle, formerly a division chief in the IMF’s European Department responsible for non-crisis countries and currently an adviser to the Fund. Not content with quietly slinking off the scandal ridden organization which has become the butt of all jokes in the international community, where humor about Lagarde's Louis Vuitton panhandling bag is as pervasive as punchlines about just how incompetent the organization is at actually doing its duty, Doyle has penned the following scathing letter which tears down every myth about the IMF: from its impartiality, to the selection process of its head, to its effectiveness. The letter also contains the following gem: "After twenty years of service, I am ashamed to have had any association with the Fund at all." Pretty much says it all. This is a scandal in the making, and one which may shake to the core the credibility of the IMF in the context of international organization.

Full letter (pdf)

European Department
Washington DC
June 18, 2012


To Mr. Shaalan, Dean of the IMF Executive Board

Today, I addressed the Executive Board for the last time—because I am leaving the Fund.

Accordingly, I wanted first to formally express my deep appreciation to the Swedish, Israeli, and Danish authorities with whom I have worked recently, as well as all others with whom I have worked earlier, for their extraordinary generosity towards me personally.

But I also wanted to take this opportunity to explain my departure.

After twenty years of service, I am ashamed to have had any association with the Fund at all.

This is not solely because of the incompetence that was partly chronicled by the OIA report into the global crisis and the TSR report on surveillance ahead of the Euro Area crisis. Moreso, it is because the substantive difficulties in these crises, as with others, were identified well in advance but were suppressed here. Given long gestation periods and protracted international decision-making processes to head off both these global challenges, timely sustained warnings were of the essence. So the failure of the Fund to issue them is a failing of the first order, even if such warnings may not have been heeded. The consequences include suffering (and risk of worse to come) for many including Greece, that the second global reserve currency is on the brink, and that the Fund for the past two years has been playing catch-up and reactive roles in the last-ditch efforts to save it.

Further, the proximate factors which produced these failings of IMF surveillance—analytical risk aversion, bilateral priority, and European bias—are, if anything, becoming more deeply entrenched, notwithstanding initiatives which purport to address them. This fact is most clear in regard to appointments for Managing Director which, over the past decade, have all-too-evidently been disastrous. Even the current incumbent is tainted, as neither her gender, integrity, or élan can make up for the fundamental illegitimacy of the selection process. In a hierarchical place like this, the implications of those choices filter directly to others in senior management, and via the appointments, fixed term contracts, and succession planning of senior staff, they go on to infuse the organization as a whole, overwhelming everything else. A handicapped Fund, subject to those proximate roots of surveillance failure, is what the Executive Board prefers. Would that I had understood twenty years ago that this would be the choice.

There are good salty people here. But this one is moving on. You might want to take care not to lose the others.

cc. Ms. Nemat Shafik
Mr. Stanley Fischer
Mr. Stephan Ingves
Mr. Benny Andersen
Mr. Alex Gibbs
Mr. Eric Meyer
Mr. Amit Friedman
Mr. Martin Holmberg
Mr. Reza Moghadam
Mr. Mark Plant
Mr. Brad McDonald

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francis_sawyer's picture

My Heart Will Go On...

DoChenRollingBearing's picture

Does this mean that we can ask the IMF for our gold back?

ihedgemyhedges's picture

And does this mean he will refund his salary that he sucked out of there for 20 years without really doing jackshi* for the world?????

fonestar's picture

status-quo looking less and less statussy every day now...'s picture



There are good salty people here.


Betcha can't eat just one!

fuu's picture

"Accordingly, I wanted first to formally express my deep appreciation to the Swedish, Israeli, and Danish authorities with whom I have worked recently, as well as all others with whom I have worked earlier, for their extraordinary generosity towards me personally"

Huh. What other news story in the last couple of days has included Israel and Sweden.

TheGardener's picture

He did not directly challenge the imperialistic mission
of his former employer, so he should be eligible for a full international pension in all the monies.

machineh's picture

'Peter Doyle, formerly a division chief in the IMF’s European Department responsible for non-crisis countries.'

Non-crisis countries in Europe?

This sounds like the agricultural extension agent in the Bronx who quit because 'his farmer died.'

FEDbuster's picture

Have any headhunters out there contacted Krugman or maybe even Bernake, yet?   He will most likely be replaced by Steve Liesman.

DaveyJones's picture

"The  rats are jumping from the ship"     too bad the water's boiling 


tenpanhandle's picture

even rats don't like to be called rats.  after 20 years of ratdom a single mea-culpa does not a non-rat make.

nmewn's picture

lol...good point, correct me if I'm wrong but didn't he just say in a lot more words that central planning has failed?

Oh my, whatever will we do now? ;-)

Dr Benway's picture

I wonder where that salty taste they are covered with comes from


Dare I hazard a guess?

engineertheeconomy's picture

It's a ponzi game of musical chairs.

Did I just hear the music stop?

AldousHuxley's picture

I gotta say superelites in Europe are little dull compared to American elites. you need to put black police chiefs to beat rioting blacks.


You see, American elites knew shit was goign to hit the fan so they put a African-American face in the white house to calm working class blacks down and from rioting. American elites then put Asian-American face in "world" bank, so that they won't get criticisms from the Chinese. That's what the whole diversity affirmative action is for.....politics. Even in corporate world, they put Indian guy as head of Citi group to open up India's financial markets, Indian women as head of Pepsi to sell sugar water to Indians, etc.....


Unfortunately, Europe only has pipeline of muslim faces and ex-colonial African immigrants are nowhever near leading a public institution. Only thing they had was a woman, so they put Lagarde to the top post, but BRICs want one of their one represented.


Get with the program Europe. America is going to put an Iranian-American general to invade Iran soon and monopolize oil.

Pinto Currency's picture


There is a cascading awareness that the entire debt/fiat money system is fraudulent.

One more round of QE will confirm it.

Then the sheep will start scratching their heads wondering who looted the gold from their treasuries.

The Big Ching-aso's picture



Now he tells us what most already knew.

jeff montanye's picture

and it looks like the imf is bailing on the euro project.  money quote in link: if the eu is to be the united states of europe, some people may want to vote on it.

GetZeeGold's picture




Looks like he's not going to be offered an apprenticeship with the BIS.


Pinto Currency's picture


You are right - my bad, Ching Aso

misnomer00's picture

just so as to be clear of the facts, India has the one of the least per capita consumption of cola in the world. India is more attarctive to corporates like Pepsi because of their food and juice businesses.

AldousHuxley's picture

"International" Monetary Fund = Euro based loan sharking, led by European (French/German)

"World" Bank = Dollar based loan sharking lead by American


"In 2011 the world's largest developing countries, the BRIC nations, issued a statement declaring that the tradition of appointing a European as managing director undermined the legitimacy of the IMF and called for the appointment to be merit-based."

Didn't he saw what happened with Obama scratching Sarcozy's back by arresting DSK in New York so that he can't run for presidency of socialist party, while putting American educated Lagarde in his place. they are in the loan sharking business (just like JP Morgan and Warren Buffett), why would they warn countries of coming financial crisis?
GMadScientist's picture

How'd that plan work out for the midget frog?

Yen Cross's picture

   Point Taken.  Nice quote!

Sockeye's picture

It's the French. They don't know how to run anything more than a bike race.

unrulian's picture races are all fixed with performance enhanced participants

AldousHuxley's picture

that economist must not have been very bright to find out the truth 22 years later.

everyone in the 3rd world knows what IMF (Euro) and world banks (Dollar) are for.

Pay Day Today's picture

I'm sure he knew that much; what apparently annoyed him was the fact the IMF treated nice 1st world countries exactly the same way.

SheepRevolution's picture

There is just simply not anything more entertaining as bankster-bitches exposing other bankster-bitches.

DeadFred's picture

There's mention of how this went public, one of the CCs? There will be a criminal probe over the leak most likely.

AldousHuxley's picture

IMF & World Bank = PR to justify austerity in poor countries.


They only hire credentialled economists who agree in their philosophy of neo-liberalism to make it seem like austerity is the best option.


"See Sudan, we have ALL of these phD economists saying that you need to privatize state assets to pay for your debts we sold you"


Pay Day Today's picture

"IMF & World Bank = PR to justify austerity in poor countries."

Including all of North America and Western Europe, I suppose.

GMadScientist's picture

IMF  + WorldBank = Hustlers who insure that developing economies get on the debt treadmill and spend it precisely where they are told.

More Mafia than Marketing Agency.

matrix2012's picture

a same mole hunt-down as VATICAN did recently?

They should learn from Joseph Alois Ratzinger's apparatchiks.



-Vatileaks Scandal Exposes Secrets Of Pope’s Empire:


-Transparency vs. Money Laundering: The Shady Past of the Vatican Bank - SPIEGEL ONLINE (2012-07-02)


-Catholic Church Fears Growing Vatican Bank Scandal (2012-07-06)


-Pope sues magazine over photo with controversial stain — RT (2012-07-12)


National Secular Society - Vatican’s use of the law to try to hide its secrets looks set to backfire (2012-07-11)


Vatican: 'Interrogations continuing' in Vatileaks scandal (2012-07-03)



In the past case, the head of the Banco Ambrosiano, Roberto Calvi, was found hanged under Blackfriars Bridge in London in 1982. Will the history repeat?



Other posts at Mafia Today :-)

1. Director of Vatican Bank resigns under pressure VATICAN CITY — In an unprecedented move, the board of...


2. Conspiracies Swirl As Vatican Scandal Engulfs Rome The scandal over leaked documents that has been engulfing the...


3. Vatican City could be hub for money laundering, says U.S. Drug enforcement chiefs have for the first time identified the...


4. REPORTS: BAHAMAS GOVT FAILED TO CO-OPERATE WITH INVESTIGATION INTO BANK SCANDALTHE Bahamas government has failed to co-operate with an investigation...


5. Vatican: World’s smallest state signs treaties to fight terror, drugs, mafia Vatican City, 26 Jan. (AKI) – The Vatican has become...


Clerical Whispers: Vatican leaks scandal report due this month: spokesman (2012-07-11)




earleflorida's picture

OT... great digging   thanks

Disenchanted's picture



Rothschilds: "Guardians of the Papal Treasury" ~ 1906 Jewish Encyclopedia


In other words the Rothschilds are the Vatican's bankers. Anyone think that status has changed since?


The Jewish Encyclopedia
(1901-1906, Vol. 2, p.497) states...

The Union Générale.
"It is a somewhat curious sequel to the attempt to set up a Catholic competitor to the Rothschilds that at the present time the latter are the guardians of the papal treasure." ... rothschild

Mentaliusanything's picture

Ladies and Gentleman this little "things" proves the tide is on the run out. Soon they will be exposed with ALL the ugly bits hanging out. I will put not only put on sunglasses when "Ze Bitch with the bag" stands naked I will self medicate so I don't remember it.

Two words for this .... "Seminal moment"

Now where is that popcorn I saved

matrix2012's picture

Non-crisis countries in Europe: VATICAN; MALTA; LIECHTENSTEIN; SWISS

feel free to add some more

jeff montanye's picture

swiss aren't members of the eu or associated groups, ditto vatican (and it may have some unfunded liabilities as it had a pretty good "tobacco moment" a while back).

some say finland, but it depends on how you define crisis:

Ghordius's picture

jeff, you can't take the telegraph as a serious source (of opinion) about the EUR anymore.

verum quod lies's picture

Exactly my thoughts as I read the letter. Where is the real challenge to the status quo that has screwed the financial system and economy up? It seems he is most happy to have pulled down his salary for twenty years; and now it occurs to him that they haven’t been ahead of the curve? This is why, at least in part, the IMFs of the world continue to drag us down. Here we have a half-awake individual who still can’t call a spade a spade. As he says: “A handicapped Fund, subject to those proximate roots of surveillance failure, is what the Executive Board prefers. Would that I had understood twenty years ago that this would be the choice.” Therefore, what he is really desirous of is a “Fund” that is more proactive and aggressive in tackling these foreseeable crises. Yes, we are just one more high-end bureaucrat away from utopia, or perhaps one more proactive regulation away from pure nirvana. Accrording to this genius, we just need to be more proactive and apply the standard medicine earlier, then all will be fine. BS, bite me.


Oracle of Kypseli's picture


Generocity? I wonder who bought him the Panamera

marco1324's picture

"extraordinary generosity towards me personally"

I think he means thanks for, the fat bank account, cars, boat, holidays, fine wine, girls, boys etc etc etc

Jena's picture

"After eating 97% of this dinner, I must tell you it is simply awful and I will not pay a penny for it!  Yes, I know I told you it was cooked exactly as I ordered it and I told you it all was perfect each and every time you came to the table but now that I've had almost all seven courses I realize I am not at all satisfied.  Not a bit.  

"Now, away with you and let's both forget that this evening ever happened!"


James_Cole's picture

If doing the right thing was easy, everyone would do it.

Whistle-blowers are not treated kindly, hats off to to this guy, he just lost a lot personally and gained many enemies in a very public fashion. 

jeff montanye's picture

i was thinking the same thing.  unless you're bradley manning or similar ( ( realize that these resignations (even diamond at barclays) are part of the solution not part of the problem, at this stage.

letting perfection harm goodness is an error, particularly now, imo.

Jena's picture

Yes guys, but twenty years.  While that is a very long time to fill a list of the misdoings of one's employer, it is also a very long time to enjoy the largesse of the same.