The first lesson from Greece for the eurozone… the existence of loony bank regulators!

Sir, Martin Wolf asks “What does Greece…this small, economically weak and chronically mismanaged country…tell us about the eurozone?”, “Much too much ado about Greece”, February 15. 

Well, the first thing it clearly tell us, is that the eurozone banks have been in the hands of loony regulators… who allowed the eurozone banks to leverage with Greek public debt 62.5 to 1. Without it, Greece would not have been able to ramp up as much debt, no matter how bad and fraudulent its accounting. 

And the second thing it tells us, is that the accountability and good-governance within the eurozone is basically non-existent. It is basically the same regulators who produced the failed Basel II, which are now in charge of producing Basel III with only minor changes in the script, except of course for those regulators that have been promoted. There has not even been the slightest hint of the bank regulators having been Sarbanes-Oxleyed. 

PS. Europe, if doctors can be sued for malpractice, why can’t bank regulators?