Professor Edward Kane:

My view is that it comes back to measuring capital and the assets which are risk-weighted in many cases. Those authors are very careful to talk about total assets, but even with total assets, there is the question of whether it is of the bank or the banking organisation. My view is that this would be helpful for a while, but one would have innovations and reorganisations designed so that these capital requirements would become increasingly toothless. What I am saying is that this puts a constraint on the behaviour of people just like a speed limit puts on a constraint, but the question concerns how that constraint is enforced and things are measured. The measurement system has so much leeway that I fear that this would not be a long-term solution.