8 Indeed, employees appear to invest heavily in their company’s stock despite the fact that their income is already tied to the fortunes of their employer. More than one-quarter of 401(k) balances are held in company stock, and this high share arises not only from an employer match but from voluntary purchases as well.
But most fundamentally, the St Augustine approach suffers from the fact that the compelling logic of Basel 3 has not really changed and that there is every possibility the banks need more capital to get through their current travails, not just some future ones.