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It can't replace depleted capital reserves or guarantee deposits.
On Tuesday, the Bank of Japan said it was considering offering as much as 1 trillion yen in loans to banks to shore up their depleted capital.
By late December, Mr. Pandit grew concerned about the bank's depleted capital levels as he prepared to report another devastating quarterly loss to a fractured board.
What's more, the act became law just when the banks needed huge profits to pay back bailout funds and build up their depleted capital reserves.
A planned doubling of our square footage was derailed by the financial crash, which depleted capital, but in some ways this turned out to be a blessing in disguise.
The banks are supposed to get 85 percent of the forthcoming €31.5 billion loan tranche to replenish depleted capital, but whether they will then lend easily again is an open question.
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Eckstein, who expected prices to fall, was quickly depleting capital, struggling to meet margin calls.
He declined to pass judgment on individual lending projects, but suggested that some of the largest loans the bank was considering, including one to finance a Brazilian dam, could deplete capital that was better devoted to smaller, more specific poverty-fighting efforts.
Risk aversion, fear of default and depleted bank capital have caused private borrowing rates to deviate sharply from policy rates.
He called this "the liquidation vicious cycle," and the result can be that institutions are depleted of capital as the psychology of a bank run prevails and the value of their assets plummets.
He would always suffer, Wall writes, from the indignity of being that absurd creature, "a romantic anarchist with a modest private income," and this costly expedition had depleted his capital.
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