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But nonetheless it is probably true that even with the right denominator, these firms would have needed capital ratios of far above 8-9% athehe start of the crisis to avoid failure.
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Some banks have needed more capital, and a few have been nationalised outright.
The new operational-risk element, for instance, will hit banks specialising in areas such as custody or asset management that involve little lending and therefore in the past have needed little capital to keep supervisors sweet.
The cost-per-acquisition was too high and, for HouseFix to have continued, we would have needed more capital infusion.
Over most of this century, companies have needed more equity capital than they have been able to provide from retained profits.
The Bank of England's research of other crises points to similar conclusions: the worst failed bank would have needed a core-capital ratio of 18% to stay above a 4% minimum.Clearly, regulators could simply raise all banks' capital to a level that would keep even the outliers from failure.
It would have needed a core-capital ratio of 23% to avoid falling through the 4% floor.
"We would not have needed to raise more capital unless we completed the C.D.O.
Gallo, and to stay in the high-volume, low-cost game, they would have needed huge infusions of capital.
Mr Daniels says the bank would still have needed to boost its capital during late 2008, which would have been hard without state support.
Citigroup would have needed a starting core-capital ratio in the mid-teens.
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