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I don't know how good Morgan's information is here, but it seems to have come from an IMF source who, if his account is to be believed, does not regard the plan which eventually emerged as workable.  Geithner's objection was unexpected, and is presumed by Morgan Kelly to be due to his closeness to US banks.  Perhaps they also had a stake in the Irish bank bonds which would have received a haircut under the IMF proposal.

But Morgan's main fire is directed at the ECB (not the IMF) who would not countenance any restructuring (or even buying back of Irish debt at a discount on secondary markets). Morgan portrays the IMF (at staff level at least) as supporting his thesis that the ECB insistence on no restructuring, high interest rates, and total focus on price stability making an Irish default inevitable.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon May 9th, 2011 at 08:11:08 PM EST
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