Second, given the crisis of confidence in the financial markets, backstops have to be identified to ensure the stability of the financial system, in particular banks. This means that markets – not only supervisors – have to be convinced that banks can withstand a worsening of the situation, both in terms of access to liquidity and in terms of absorbing potential losses through capital.
Of course, we are aware that they exist, and that in some cases, they could oblige a bank to publically disclose a certain finding right away. While this may not necessarily be the case, it could happen.