•  Second, the so called regulatory capture i.e. close relationships between banks and the supervisor led to excessive forbearance on the part of supervisors. •  Third, the large “publicly influenced” financial sector in Europe weakened the credibility of public authorities.
We also saw a further fall in the sovereign yields of Portugal and other formerly distressed countries – in spite of the renewed Greek crisis. This suggests that the asset purchase programme may be shielding other euro area countries from contagion, which also helps us achieve our monetary policy goals across the euro area.