More Lying, Cheating And Stealing At China's Troubled Banks....

This Standard story shows that it is nearly impossible to trust any bank or trust anything that they do.

The Industrial and Commercial Bank of China stands accused of secretly adding a batch of class-five loans - those deemed least likely to be collected - into a batch of higher-grade, class-four loans set for auction this past weekend.

So, they get caught at trying to dupe investors.

The question that I have is what was their motive for doing something like this? The Bank's directors are probably not in a position to receive additional compensation for selling off assets higher than expected. So I suspect this was a feeble attempt to fob off loans that were made from some of these corrupt employees that may have implicated them in wrongdoing.

All of China's banks are a big problem and additional US$300 billion is needed now to clean up their books. Investments in these troubled institutions are doomed to fail, in my humble opinion, since it is impossible to get a handle on the problems nor control employee pilfering. Best of luck to Bank of America and their wasted US$3 billion investment in China Construction Bank.