Sometimes, difficult choices can open the doors to future opportunities, and the short-run pain can be worth the long-run gain. Just as importantly, life satisfaction requires an ethical framework. Everyone needs such a framework. In the short run, it is possible that doing the ethical thing will make you feel, well, unhappy.
More equity reduces the likelihood of distress and insolvency, and therefore the likelihood that a situation occurs in which a bail-out is inevitable. This, in turn, makes the bail-in threat more credible ex ante. With higher equity, the unity of risk-taking and liability is restored. Furthermore, with higher capital requirements, banks have lower incentives to become “toobig-to-fail”.