First, the supervisory authorities are able to distinguish between sound and unsound institutions. Second, the unsound institutions, and in particular the managers responsible for unsound decisions, will not be helped and will be replaced. One can question whether these two basic principles are being fully respected in the current turnmoil.
As to supervision operational autonomy is of the essence but of a nature that is functionally determined. Monetary policy independence extends indeed to a broader regulation power and a role as “guardian of the Treaty”.