It is now well known that the first sign of a progressive buildup of gross disregard of the basics of good governance in the US was the asset bubble that was fueled by the virtual absence of risk management and personal financial prudence. There was also lack of transparency, accountability and supervisory oversight standards.
A path must be identified to guide banks towards adequate levels of capital and loss-  absorbing capacity to increase their stability and readiness to withstand adverse market  conditions without compromising their capacity to finance the economy and sustain the  economic recovery.