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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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Fri, 07/20/2012 - 20:05 | 2638058 Heroic Couplet
Heroic Couplet's picture

The IMF is not an elected body, represents only the private bank cartel, no one on Main Street gives a crap, and Rick Santelli better keep his ugly brown suit nearby, he's needed for more eulogies.

Fri, 07/20/2012 - 20:14 | 2638077 Colonel
Colonel's picture

Leftards will still worship the IMF and the people who work there. Can hear them now, "DSK is soooo innocent." while they swoon and faint.

Fri, 07/20/2012 - 20:39 | 2638114 Atomizer
Atomizer's picture

DSK was framed and replaced. He was deemed ineffective in completing the timeline of goals needed to move FORWARD. Lagarde is finding out the hard way. Just watch her


Another IMF used car salesman needs to be appointed to carry on their utter bullshit plans.

Fri, 07/20/2012 - 20:21 | 2638091 Atomizer
Atomizer's picture

BTW.. This is your work in progress branch uniting the fragile global market [kick the can] ponzi scam.


Fri, 07/20/2012 - 20:35 | 2638106 richfried
richfried's picture

As a first time commenter and someone whose eyes are half open, I wonder, what should be the foundational rules of a healthy banking system that could never tear a country apart through extortion?  Free banking, full reserve requirements? Reading Fools Gold, it seems that once you let a bank offload its default risk on a loan it has made, you are opening pandoras box. When thsi system collapses, what will be the rules of the new system?  

Fri, 07/20/2012 - 21:26 | 2638180 Griffin
Griffin's picture

I think it would be a good idea to seperate retail banking from investment banking. So those who like to gamble would not be able to use peoples savings to do it.

Everything that could create systemic risk should be safeguarded, like deposits and pensions.

When a bank is insolvent it should be shut down and put into administration. It would be a good idea if the books would be opened to every one who has interests in the matter, like investors, bondholders and every one who has a claim to the estate of the remains of the bank.

I think it would be a good idea to expect a crash and start making plans to reboot the system in a "safe mode" without all the criminal stuff that is running the world economy into the ground. 














Fri, 07/20/2012 - 21:40 | 2638201 Boxed Merlot
Boxed Merlot's picture

what will be the rules of the new system?...



Fri, 07/20/2012 - 23:09 | 2638288 economicmorphine
economicmorphine's picture

Some of us are already playing by the rules of the new system.  Here's a hint.  It ncludes Krugerrands, a mattress and a 12 gauge pump action shotgun.  My personal preference is the Mossberg.

Sat, 07/21/2012 - 04:33 | 2638490 francis_sawyer
francis_sawyer's picture

You'll shoot your eye out kid!

Fri, 07/20/2012 - 20:40 | 2638116 Yen Cross
Yen Cross's picture

 I'm impressed with the "forum/quorum"@ z/h.

      The vernacular is trade based.

Fri, 07/20/2012 - 20:42 | 2638121 marco1324
marco1324's picture

Its like a slow motion version of Kerplunk.

Fri, 07/20/2012 - 21:03 | 2638150 Yen Cross
Yen Cross's picture

 Slow Motion : digressiveness. All the asshats are jumping onto their arcs!

Fri, 07/20/2012 - 20:44 | 2638127 bugs_
bugs_'s picture

no possibility of reform.  what is best for mankind is that these organizations and their power are destroyed.

Fri, 07/20/2012 - 21:08 | 2638143 Yen Cross
Yen Cross's picture

Tyler, beating dead "Clydesdale's"  is getting old!


    The pin head red arrows, are getting old!  The circumference of planet Earth is 24 thousand miles!

      A carot is .07 ( GOLD is weighed @ 31 grams.)  

  Keep junking me douche bag!

Fri, 07/20/2012 - 21:14 | 2638168 EvlTheCat
EvlTheCat's picture

Yen you and I get drunk the same on Friday nights!!  I raise a toast to you my friend!

Fri, 07/20/2012 - 21:11 | 2638163 blindman
blindman's picture

they can all just fuck off.

Fri, 07/20/2012 - 21:16 | 2638173 AgShaman
AgShaman's picture

Thanks for your service to global banking....we'll book you a room at the Sofitel in New Dork City, soze you can unwind properly...

I think the maid is almost finished prepping your room for you

Fri, 07/20/2012 - 21:26 | 2638183 Monedas
Monedas's picture

Did you know .... there are no native rat populations in Antarctica !          Monedas      1929          Comedy Jihad Just Thought I'd Add That To The Conversation

Fri, 07/20/2012 - 21:30 | 2638189 Yes_Questions
Yes_Questions's picture



I said GOOD DAY!!

Fri, 07/20/2012 - 21:34 | 2638191 Coldfire
Coldfire's picture

"A handicapped Fund, subject to those proximate roots of surveillance failure, is what the Executive Board prefers."

Sounds great, if they would only pull it off. Fuck the IMF.

Fri, 07/20/2012 - 21:36 | 2638192 Monedas
Monedas's picture

Wasn't Peter Doyle that bald head fuck Joe ..... the movie ?  He hosted SNL once in the 70's ?

Sat, 07/21/2012 - 02:04 | 2638431 putaipan
putaipan's picture

who the fuck are you? his (R.I.P.) performance as  the fdr of the imf in the coffee percolated movie in the 80's....think joe strummer meets hollywood. or rauol duke's murray roam attorny!!! fuckk you big letterman pant's dad! 



Sat, 07/21/2012 - 13:05 | 2638964 Jena
Jena's picture

Peter Boyle, maybe? I don't know about SNL but he was especially good in "Young Frankenstein" and an episode of "The X Files".

Fri, 07/20/2012 - 22:19 | 2638208 LongOfTooth
LongOfTooth's picture

So, Mr. Doyle never read John Perkins' "Confessions of an Economic Hit Man" which is about the sleazeball actons of the IMF? 



Fri, 07/20/2012 - 22:16 | 2638226 Cabreado
Cabreado's picture

So then...

while it remains to be seen how far the misguided and self-absorbed ("scum" works too) will ratchet things down,
in fear,
as their illusion unwinds very quickly now,
the evidence is here,
the rats jumping ship...

the stance of the common man, awake, needs to...

recognize that it is outliers of unsound mind in control

and as sure as justice needs to be served,

in the coming days,

have humility,

have tolerance for the forgotten but of good hearts and intention

these are the "downtrodden"

and as intelligent and good people

show collective leadership more powerful than the broken pathetic mess that is...


not let it all go to hell.

Fri, 07/20/2012 - 23:02 | 2638232 SafelyGraze
SafelyGraze's picture

most interesting part of the departure letter was where he said,

"I can no longer, in good conscience, support an unelected unaccountable countryless so-called fund that issues this so-called SDR,

a pseudo-currency based on rehypothecated non-existent metal (i.e., monetary gold) that is booked at only 3 percent of its actual value and treated as mere dues paid by countries who join the club rather than being actual physical money,

a non-promissory non-obligation fiat-emission for exclusive use by monetary authorities who may, according to their own mutual non-binding agreements, choose to convert it into the various units of national fiat-banking-medium before repaying it to us with interest we have not yet created."

yeah. that part.

Fri, 07/20/2012 - 22:13 | 2638235 Pancho Villa
Pancho Villa's picture

"I am shocked -- SHOCKED -- to find that gambling is going on in this establishment."

Oops! I forgot that that is actually Jamie Dimon's line.

Fri, 07/20/2012 - 22:37 | 2638256 ekm
ekm's picture

If IMF board members have always been incompetent for 20 years, I have a question for those who work in Finance:


Is it possible to be an EXPERT in finance? Does this field offer the possibility of expertise?


As of today, I declare that there is no such a thing as a financial expert. There are science experts, art experts, but the field is so extremely UNDEFINED that the possibiltiy of expertise is zero.

Fri, 07/20/2012 - 23:00 | 2638278 Cabreado
Cabreado's picture

Of course you are correct.

There are "experts" on Theories.

In their expertise and ignorance, they are recruited, and become Tools.

In the certain, eventual Chaos of such an arrangement, they become Fools.

And then it all falls down.


Sat, 07/21/2012 - 10:14 | 2638646 TNTARG
TNTARG's picture

I'd rather say there are criminals in finance, not "experts". Perhaps experts on criminal finance. Financial genocides or so.

Fri, 07/20/2012 - 22:45 | 2638264 StrawberryBlonde
StrawberryBlonde's picture

Interesting...thx for the post!

Fri, 07/20/2012 - 23:48 | 2638328 Au
Au's picture

Another one goes Galt.

Sat, 07/21/2012 - 01:55 | 2638421 putaipan
putaipan's picture

i wouldn't come near that bitch...... allen's already been there.

Fri, 07/20/2012 - 23:49 | 2638329 billybobtx
billybobtx's picture

After twenty fugging years...what? This is some sort of hero after sucking the teat for 20 years...gimme a fugging break.

Fri, 07/20/2012 - 23:53 | 2638333 jonjon831983
jonjon831983's picture

He who defects first, defects best?  As more try to defect the less forgiving (or forgotten) defectors will be by the general public.

Sat, 07/21/2012 - 00:53 | 2638379 BigDeuceLittleToilet
BigDeuceLittleToilet's picture


Sat, 07/21/2012 - 01:23 | 2638401 Nachdenken
Nachdenken's picture

He did something about what he believed, even if it took 20 years.  And made a public statement that could make the next years uncomfortable. More than most in the establishment dare.

good on ya Peter, youse awright.

Sat, 07/21/2012 - 01:53 | 2638419 putaipan
putaipan's picture

mmm. peter. tell more..... or the moamar knife up your ass ventiloquism muppet last act before decomposition recomandation is in effect

i'm starting to reconsider to my .99% amnesty truth and reconcilliation stance. hit man/jackyl ?.... i don't freakin' care .... more truth now!


(tyler's..... thank you for the bold font size improvement)

Sat, 07/21/2012 - 02:03 | 2638430 mt paul
mt paul's picture


lamp post lynch kits..

Sat, 07/21/2012 - 02:10 | 2638434 anonnn
anonnn's picture

"...In a heirachical place like this, the implications of those choices filter directly to others in senior management, and via the apointments, fixed term contracts and succession planning of senior staff, they go on to infuse the organization as a whole, overwhelming everything else. "...

A most workable definition of "Shit flows downhill".

Sat, 07/21/2012 - 02:13 | 2638437 putaipan
putaipan's picture

s.d.r.'s anyone ? ..... line in the sand ? each one learn five.............

Sat, 07/21/2012 - 02:34 | 2638445 Milton Waddams
Milton Waddams's picture

20 years? this bloke is slow on the uptake.

Sat, 07/21/2012 - 02:55 | 2638457 Milton Waddams
Milton Waddams's picture

all of these post-WW2 cash grabs are collapsing and the people in charge are becoming annoyed; if only because they have no where to park their idiotic children.

Sat, 07/21/2012 - 12:54 | 2638465 Greydog
Greydog's picture


This is how the IMF describes itself on its ABOUT page: 

The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.


  • secure financial stability – (where?) EPIC FAIL
  • facilitate international trade – (at what cost?) - EPIC FAIL
  • promote high employment – (like in Greece and Spain?) EPIC FAIL
  • sustainable economic growth – (where, Christine’s bank account?) EPIC FAIL
  • reduce poverty around the world – (again, where?) EPIC FAIL


Christine Lagarde and the IMF are parasites feasting on humanity. The IMF is a criminal organization – repeat offenders, conspirators and the source of humanitarian crises around the world.

All IMF employees, past and present, have contributed a little piece of hell to this ruthless organization. In a just world, each and every IMF employee would be indicted and prosecuted for crimes against humanity, including this dirtbag, Peter Doyle. His letter only proves that he is a conniving psychopath, trying and failing to redeem himself. I predict a self-congratulatory book tour, in his future.

However, no matter how many people Mr. Doyle throws under the bus in his pathetic attempt to cloak himself in honor and dignity, the blood stains on his hands are an eternal reminder that a dishonorable life, devoted to systematically inflicting extreme and brutal poverty, by the most ruthless means possible, cannot be erased by a mea culpa that comes 20 years too late. May justice come to him, in the form of Marley’s ghost times a million.

Everywhere the IMF goes, disaster capitalism follows.

For a closer look at IMF handiwork, check out this documentary:

Life and Debt – Jamaica’s IMF / World Bank Peril:


Sat, 07/21/2012 - 06:42 | 2638546 goldinpenguin
goldinpenguin's picture

Is there an Enlish language version available?

He spent 20 years honing his skills at writing inscrutable memos.

Sat, 07/21/2012 - 06:54 | 2638550 I am Jobe
I am Jobe's picture

Ropes Bitchezz.

Goldman Sachs: the bank that thought it ruled the world
Goldman Sachs was ‘doing God's work' - but it is now being investigated for fraud. Harry Wilson reports.

Sat, 07/21/2012 - 06:55 | 2638551 CharlesH
CharlesH's picture

"Pretty Much" XD

Sat, 07/21/2012 - 07:49 | 2638569 ripper
Sat, 07/21/2012 - 08:35 | 2638586 CunnyFunt
CunnyFunt's picture

He'll end up getting HERFed.

Sat, 07/21/2012 - 08:51 | 2638596 torak
torak's picture

Yo, I like that:  "global reserve currency is on the brink"

Sat, 07/21/2012 - 09:12 | 2638601 the 300000000th...
the 300000000th percent's picture

IMF = International Mother F$ckers

Sat, 07/21/2012 - 09:52 | 2638622 Yen Cross
Yen Cross's picture

 Tyler you're awesome! You never cease to amaze me, with your endless pool of information!

 It took this "meatball", 20 years to figure out what a joke the  "NWO" ÏMF is?

Sat, 07/21/2012 - 10:02 | 2638637 El Hosel
El Hosel's picture

"Meatball" is right, now he can retire with a "clean conscience" after a long career of ignoring the truth.

Sat, 07/21/2012 - 10:15 | 2638644 Monedas
Monedas's picture

Peter Boyle. whoever you are, you don't need to resign .... you need a little "ZEROLEDGE" !           Monedas       1929          Comedy Jihad "Just Like In The Old Days .... before we were here !"     Y. Berra

Sat, 07/21/2012 - 10:14 | 2638645 dannynewmexico
dannynewmexico's picture

We need more people who work for the system to come forward and talk.....


Sat, 07/21/2012 - 10:19 | 2638649 Monedas
Monedas's picture

Never wash your wok nor your absinthe shooter !                  Monedas       1929            Comedy Jihad Just Being Here

Sat, 07/21/2012 - 13:06 | 2638967 Grand Supercycle
Grand Supercycle's picture

As mentioned numerous times, market intervention has only postponed the inevitable.

Despite short and medium term market vacillation - the following remains a constant :

>> USDX monthly indicators [ie big picture] continue to warn of significant long term USD upside. (thus EURUSD & AUDUSD etc bearish)

>> SPX monthly indicators [ie big picture] continue to warn of significant long term downside for equities which will be worse than 2008.

Sun, 07/22/2012 - 02:34 | 2639874 Youri Carma
Youri Carma's picture

OF THE NOBEL PRIZE IN ECONOMICS JOE STIGLITZ: IMF same exact four-step program – The Globalizer Who Came In From the Cold

IMF same exact four-step program:

1.0 Privatization ‘Briberization.’

2.0 IMF/World Bank capital market deregulation allows investment capital to flow in and out the “Hot Money” cycle.

3.0 Market-Based Pricing, a fancy term for raising prices on food, water and cooking gas

3.5 IMF and World Bank call their “poverty reduction strategy”: Free Trade- “The IMF riot.”

Sun, 07/22/2012 - 19:01 | 2641136 Me_Myself_and_I
Me_Myself_and_I's picture

Sounds just like the processes in place at Bank of America.  Wells Fargo.  Citigroup.  BNP Paribas and its subsidiaries.

Basically all the ones that slobbered with greed on the way up. slobbered over taxpayer bailouts when offered, and sutbbornly refuse to change out the people that created the mess. 

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