Supervisors may take appropriate action or require the banks to hold additional capital in case of non-compliance.
Most significantly, the Fed will require banks to hold less capital against home mortgages than against other types of consumer and business loans.
"danger is that they will be holding too much capital in bad times."
With the likely blow up of the Euro, our banks cannot hold enough capital.
They were not required to hold adequate capital and employed inadequate risk management.
They held net capital in the billions, not hundreds of thousands, of dollars.
Perhaps the most important capital level requires the two companies to hold capital of 0.45 percent to 2.5 percent of their assets.
Those who hold capital reap profits off the backs of those whom they hire as their laborers.
In some instances, holding companies have held capital for pending investments.
But banks that conducted most of their derivatives deals with only a few institutions would be allowed to hold less capital.