ECB is highly leveraged

A report from Open Europe, a 'think tank' published yesterday and entitled A House Built on Sand?, discloses that the European Central Bank (ECB) has a total exposure of about €444bn (£397bn) to "struggling eurozone economies".  The bank is now "23 to 24 times levered" as a result of refinancing Greece, Ireland, Portugal and Spain.

A 4% capital loss on those loans would destroy the ECB capital base.  However, 'analysts' have apparently commented that this will not happen, why? because it is backed by taxpayers.  That's what you think.