The plan also seems to take it as a given that assigning an arbitrary number for common equity will cure all ills when it comes to instability in the banking system, but that’s not necessarily the case, says Mayra Rodriguez Valladares, managing partner at MRV Associates.
“Why 10? Why not 20 or 30?” Rodriguez Valladares says. “People are too hung up on the numbers. It has to be about getting banks to improve their risk management overall.”