Like Basel, EU also favors the AAAristocracy and the “infallible sovereigns” and mistreats “The Risky”

Sir, Alex Barker in “EU poised to unveil revamped banking rule book”, February 28, quotes Barney Reynolds saying “The differences with Basel are relatively small. The spirit is more or less there”. 

Indeed Michel Barnier, the European Commission and the European Parliament are, like the Basel Committee, intent on turning a blind eye to the fact that the current crisis was caused by those who perceived as "The Infallible” turned out to be Potemkin-infallible, and not by those correctly perceived as “The Risky” and will therefor keep on favoring the first and thereby mistreating the latter.

And so banks will be allowed to continue to leverage immensely more the risk-adjusted net margins paid by the AAAristocracy and the “infallible” sovereigns, than what they will be allowed to leverage that same risk adjusted margins when paid by anyone of “The Risky”, like medium and small businesses and entrepreneurs.

And that will of course mean “The Risky” will keep on having to pay higher interests and get smaller loans than what would have been the case without these bank regulations. And that will mean of course that the banks because of this distortion will be unable to efficiently allocate economic resources, leading to less economic growth and less jobs for our young.

Sir, are they discriminating and distorting because they really want or is it because they just do not know what they are doing? 

Anyway, damn these regulating baby-boomers with their dangerous risk aversion and their aprės nous le déluge credo!