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Note that absent the accounting lies the banks would often be reporting losses (and failure to meet required capital requirements, or outright insolvency) and could not pay their senior officers bonuses and would be subject to mandatory closure under the Prompt Corrective Action (PCA) law.
But the Fed also warned that banks will be required to match significantly stricter international requirements in the near future, including a larger amount of required capital based on a bank's overall asset size.
They raised the required capital levels.
So something more was required: capital.
These plantations required capital, machinery, and expensive foreign management.
Watsa's investment fund Fairfax Financial has until 4 November to raise required capital.
Watsa's investment fund, Fairfax Financial, has until 4 November to raise the required capital.
Both lenders said they raised the required capital well before the deadline.
The required capital ratio will rise, as for most types of banking.
The riskier the loan or business, the greater the required capital.
"These adjustments reduced the amount of required capital to engage in increasingly risky activities," Mr. Einhorn says.
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