When these flaws become evident, financial markets sometimes seize up, often with very negative consequences for the economy. I would argue that we have been experiencing exactly such a cycle in recent years. Advances in information and communications technology have allowed for faster and more disaggregated mortgage underwriting decisions.
In doing so, it should alleviate the apprehension of banks that they may be subject to objections to their capital plans that are both very public and hard to fully anticipate.