> You were replying to me in that other comment as well. :)
Sorry! Will teach me to not read avatars!
On your point on RWA, whether RWA appropriately reflect the risks of a financial institution is I think a separate debate, but the definition of "appropriately capitalised" from a regulator point of view is based on RWAs, and therefore sizing how much debt needs to be bailed in to recapitalize the bank on RWAs is not absurd.
Sorry! Will teach me to not read avatars!
On your point on RWA, whether RWA appropriately reflect the risks of a financial institution is I think a separate debate, but the definition of "appropriately capitalised" from a regulator point of view is based on RWAs, and therefore sizing how much debt needs to be bailed in to recapitalize the bank on RWAs is not absurd.