March 10, 2016

Is Mario Draghi doing his ”whatever it takes”, only to hide his and his bank regulation colleagues’ mistakes?

Sir, Claire Jones writes: “The ECB’s big idea to silence the doubters is an auction of their cash that will, if it works, in effect involve central bankers paying banks to lend to businesses “Central bank flexes its muscles in effort to silence doubting voices” March 11.

For over a decade the regulators, acting like if banks did not perceive credit risk, have with their risk weighted capital requirements for banks de facto stopped banks from lending to “risky” businesses. And now, instead of getting rid of such odious regulatory discrimination they want to pay the banks to lend to businesses.

When is enough enough? Mario Draghi has clearly evidenced that as a bank regulator he is an absolute failure and has no idea of what is going on… or worse is he only trying to do the “whatever it takes” only to hide his mistakes.

Sir, in your editorial today you argue: “Now it is time to allow Draghi’s bold approach to work. Wrong! It is high time to get rid of him How many failures and mistakes are needed? 

@PerKurowski ©