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The company is now prioritising building capital by holding back growth, but we think that gives up future earnings.
It could also coax Fannie and Freddie into operating counter-cyclically by building capital in good times and lowering requirements in falling markets.
Meanwhile, inside the euro zone, the job of building capital buffers has not been properly done because of a tendency to sweep problems under the carpet.
"The industry has come a long way in cleaning up balance sheets, building capital, and adjusting to changes in financial markets and the economy," she said.
For all the talk of building capital buffers in good times, today's response to the financial crisis -- not to mention what little penitence there is on the part of banks -- looks pro-cyclical.
"We are adapting to the regulatory environment, credit quality continues to improve, and we are managing risk and building capital," the chief executive, Brian T. Moynihan, said in a statement.
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Muskoka was once considered by many to be the custom-boat-building capital of North America, with craftsmen making launches out of imported mahogany.
This zero-sum approach--building capital at the expense of the other side--is dangerous and can create a precarious back and forth.
And their primary payment is building "cultural capital," as opposed to "capital capital".
"It's about building social capital," says Hussein Kanji of Hoxton Ventures, a London venture-capital fund.
Helping build the region's infrastructure is also a powerful way of building political capital.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com