January 2015, the generous bank regulators, are going to get clobbered. And no risk-weights mumbo jumbo will save them.

In January 1, 2015, according to the Basel Committee, banks are to disclose their leverage ratio, not based on risk-weighted assets, but simply on total assets, and as of course, the banks should have done all the time.

And at that moment bank regulators who have been the most generous to their banks are going to get clobbered, and no risk-weighting mumbo jumbo is going to save them.