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Those with large exposures to troubled sovereign debt may have to hold an extra capital buffer.
The debate risks overshadowing a more modest but pressing reform: making big banks hold an extra capital buffer.
The need for an extra capital buffer might diminish if and when it's clear that a huge financial firm could be allowed to fail in an orderly way.
Bank representatives are still wary about details that remain to be worked out, however, including how much of an extra capital cushion would be imposed on the biggest of the big institutions like Bank of America, JPMorgan Chase and Citigroup.
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Between small loans needed to pay salaries in a pinch and those raised by entrepreneurs looking to open a new store in a franchise or move to a bigger office, small businesses often need a bit extra capital to expand.
The most satisfying part though is seeing the sales boost our customers are able to achieve with a little extra capital.
When a bank proposes a rating structure on a pool of debt, the rating agency will insist on a cushion of extra capital, known as an "enhancement".
It's helpful because sometimes you want to align a new investor or bridge a company with extra capital, but not argue about the valuation or have to price the round yet.
Relatively modest transfers could leave it needing a lot of extra capital: up to $13 billion if it took on a mere one-fifth of its mortgage securitisations, reckons Mr Hendler.Mr Pandit insists that Citi is "getting fit" and will reap the rewards, once the fruits of the restructuring become clear.
Yet, says the report, had regulations required more capital to be retained against riskier trading activities, or the build-up of a buffer of extra capital reserves during boom periods, "the world would not have suffered an economic setback anything like as severe as the one it now faces.
On Tuesday, the Greek finance ministry said it would dedicate $15 billion from the bailout program to a fund providing extra capital for its banks, Bloomberg News reported.
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