For example, we thought it would be very important to accommodate the diversity of business models of banks in the European market place. In our deliberations we considered two avenues as possible ways forward. In the two avenues we put different emphasis on the most promising measures to end the too-big-to-fail problem; capital requirements, resolution regimes, and structural reform.
[Page 6: Two avenues as possible ways forward were considered] In the first avenue, additional, non-risk-weighted capital requirements on trading activities and credible recovery and resolution plans for banks would have been the main instruments. We acknowledged that the measurement of risks inherent in trading assets is prone to a significant “model risk”.