ECB and Mario Draghi, cheap cash will not revive anything, when it is capital (equity) banks need

Sir, Claire Jones reports on how “ECB seeks to spur revival with offer of cheap cash” to banks, September 17.

What a nonsense! ECB should know better than any that what Eurozone banks lack is not cash but capital, meaning equity.

And the fact that is not even discussed, makes it all so surreal. And I cannot find any other explanation for it that regulators, like Mario Draghi, are scared death the profound mistake of their regulatory pillar, the risk-weighted capital requirements for banks, becomes known.

And though that is humanly understandable, that does not make it more pardonable… especially when a full generation of Europeans could, because of this regulation, become a lost generation.