Rutgers is also in the midst of sweeping changes including absorbing a state medical school as part of a push by Christie to reorganize the state's higher education system.
The classic theory of deterrence contemplates the stateabsorbing the first harm, apprehending its perpetrator and then punishing him publicly and proportionally, so as to show potential future harm doers that it does not pay to commit the harm.
Its capital position must remain strong: capable of at least maintaining its lending book, absorbing shocks, and commanding enough confidence to allow borrowing without state guarantees.
The new rules state that the amount of common equity - the best capital for absorbing losses - that banks have to hold will rise from 2% of their loans and investments to 7%.