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Markets are usually unforgiving to lenders with skimpy capital positions.
That's the only way they will be clear about their capital positions".
Back in the UK, insurers suffered some hefty falls on growing worries about their capital positions.
When stockmarkets fell, their capital positions were whacked, forcing many to issue new shares.
It has already sought to bolster its capital positions to satisfy regulators.
This smooths banks' profits over the cycle, making their capital positions "counter-cyclical".
"Bigger banks aren't going to lend until their capital positions have been repaired," he said.
Insurers, hit yesterday by worries about their exposure to equity markets and their capital positions, have recovered.
Insurers were also unwanted, on worries about their capital positions and their exposure to banks' corporate bonds.
And some of its equity may be "trapped" within its insurance subsidiaries, whose capital positions are ringfenced by insurance regulators.
Given those big banks' diverse overseas operations and stronger capital positions, these holdings do not represent an immediate threat.
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