Thomas Hoenig of the FDIC, please indicate your colleagues, the right non-Taliban way of regulating banks.
Just asking for 20-30 percent capital requirements for banks is just playing for the galleries.
PS. Personally I would gladly settle for a goal of 8-12% of capital against all assets thereby getting rid of the worst part of current regulations, namely how the risk-weighing distorts the allocation of bank credit. How to get there? I have my ideas and the one I most like is inspired by how Chile capitalized their banks in 1985.