IMF head: worst of financial crisis may lie ahead

JEDDAH (Reuters) – The worst of the financial crisis may still lie ahead and more major financial institutions may face trouble in coming months, IMF director general Dominique Strauss-Kahn said on Wednesday.

“The roots of the crisis are behind us, the roots being the fall in housing prices. The consequences for some financial institutions are still in front of us. We have to expect that there may be in the coming weeks and coming months other financial institutions with some problems,” he said.

Still, the world economy was very resilient and should rebound in 2009, Strauss-Kahn said to reporters after a meeting with Gulf Arab finance ministers and central bank governors.

(Reporting by Daliah Merzaban and Souhail Karam in Jeddah; Writing by Thomas Atkins; Editing by)

Wed Sep 17, 2008 4:46am EDT

Source: Reuters

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