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They should either have to fund themselves with much more equity or break themselves up.
Volumes are really down; you need much more equity than you did.
In both residential and commercial projects, they require developers to put in much more equity than before.
The solution for this problem, says Admati, is to require that banks use much more equity funding.
So am I. Additionally, given Fairfax's 10 percent stake in BlackBerry and the company's perilous state, any lender would probably require much more equity before financing this transaction.
For example, twenty prominent economists conclude that, with much more equity funding, banks could perform all their socially useful functions and support growth without endangering the financial system.
Similar(40)
The reason you could put an audacious title like Pioneering Portfolio Management on the cover of the book was that we moved away from this traditional model with 50% in stocks and 40% in bonds and cash to something that was much more equity-oriented and much more diversified.
The first rule is to make banks rely much more on equity, and much less on borrowing.
I submit that all of these other factors are weighing much more on equity markets than the fiscal cliff.
Their underlying argument is that the big banks remain far too leveraged and should fund their operations much more through equity than current and proposed regulations allow.
Others are holding on to see how much more in equity they can recoup.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com