Such measures would be in line with the ideas of academic researchers who have suggested that a review of capital requirements is the best way to tackle risks in trading 10and who have emphasized the need to develop bank resolution and recovery mechanisms.11  10  See e.g. Duffie (2012): “Market making under the proposed Volcker Rule”. 11  See e.g.
The Squam Lake Report (2010). BIS central bankers’ speeches  5  However, if the bank were not able to prove that its required recovery and resolution plan was credible, separation of certain banking activities could be imposed. In the second avenue, separation of retail and investment banking would be imposed.