For fixed-term contracts to be converted into permanent ones more frequently, the threshold for converting should become lower. A proposed solution has been that the firing cost would be gradually increasing with the duration of employment relationship (e.g. Bentolila et al. 2011). Then a large jump in the firing cost when continuing the employment relationship, would be avoided.
U.S. banks have increased their capital substantially since the financial crisis began, and the vast majority already have Tier 1 common risk-based ratios greater than the Basel III 7 percent requirements. The new requirements, while big improvements, are not as high as I would have liked, and the agreement contains some provisions I would have omitted or simplified.