The ECB, to fix southern Europe, and to not mess up the rest more, might need to fire Mario Draghi.

Sir, Wolfgang Münchau writes about the credit crunch many small companies are facing, “The ECB´s priority should be to fix southern Europe”, April 8.

Münchau suggest that ECB, Mario Draghi, should relax collateral requirement for various classes of asset backed securities, backstop a massive lending program by the European Investment Bank to co-finance loans to small and medium sized companies, or undertake directly the purchase of corporate bonds on the primary and secondary market.

May I suggest just firing Mario Draghi and many of his other bank regulatory colleagues? I mean anyone not capable of understanding how allowing the banks to hold less capital when financing “The Infallible” than when financing “The Risky”, discriminates against the latter, especially in times of serious bank capital scarcity, is simply not capable enough to help out.

Would this make the banks more risky? Of course not! What is perceived as risky does never endanger banks, only what is perceived as absolutely safe does that.