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Exact(13)
They should then compel banks that are found wanting to increase their equity capital, either from private investors if they can, or from the state if they must.
In April two senators, Sherrod Brown and David Vitter, introduced a bill that would require the largest banks to increase their equity capital to 15% of assets.
They should have been compelled to increase their equity funding relative to their debt, in order to create a greater buffer against future losses.
A much better approach would be to force large financial institutions to increase their equity funding relative to how much they borrow.
He has called for requiring banks to hold more liquid assets and increase their equity cushions, and passing legislation that would permit the Fed to effectively close large financial institutions when they are failing.
The most direct way to persuade managers to act like shareholders is to increase their equity stake, putting a substantial portion of their personal net worth at risk in the process.
Similar(47)
It was one of three days this month that they increased their equity fund stakes.
Commerzbank, Credit Suisse and Julius Baer increased their equity holdings; Commerzbank even reduced its cash allocation to zero.
They were seduced into increasing their equity exposure just in time for the bear market to resume.
Between 1952 and 2006, American pension funds increased their equity weighting from 17% to 69%.The process is now reversing.
If their gambles succeed, they reap large rewards by increasing their equity value; if their gambles fail, creditors bear much of the cost.
More suggestions(15)
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risen their equity
increase their consumption
increase their risk
increase their comfort
increase their Responsibility
increase their marketability
increase their footprint
increase their stake
increase their income
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com