Despite a worldwide push among the major investment banks to write-down massive chunks of bad debt in an effort to clear the subprime slate, many are still resorting to jamming an awful lot under the bed. Taking losses on a balance sheet rather than in an income statement is, of course, allowed – as accounting distinguishes between so-called trading books and long-term investments – but to what ultimate end? Here, an in-depth story that offers up the hard numbers and names names about how certain banks are still biding their time, treading water with accounting tricks. But time is running out.

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