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Capital reserves are kept to cover future losses.
Mr Scholes favours relying less on VAR to calculate capital reserves against losses.
AIG continued to fall 7.8%, or $1.36, or $16.14, Investors have been fretting that the insurer has adequate capital reserves.
It can't replace depleted capital reserves or guarantee deposits.
That could reduce the impact on banks' capital reserves.
JPMorgan Chase is pushing capital reserves provided by the funds' sponsor or its parent.
They are stashing away capital reserves to avoid relying on banks for any expansion.
It set aside $29m to meet New York's requirements for capital reserves.
The bank said it would use the money to bolster its capital reserves.
That has slowed the banks' ability to comply with regulators' demands to build capital reserves.
The flaws include relatively weak capital reserves, excessive dependence on investment banking and a tarnished reputation.
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