The report also noted that Raymond James Bank's ratio of capital to risk-weighted assets was a healthy 10.2%.
The nationalisation comes after the European Commission blocked an earlier plan that would have seen the country's other large banks, Rabobank, ING and ABN Amro, contribute capital to a so-called "bad bank" to house SNS Reaal's distressed property assets.
Recently, BlackRock bought Barclays Global Investors from British lender Barclays ( BCS), in what stands as one of the biggest post-crisis bank deals as some were selling assets to raise capital.
On Dexia, it was only on July 15 that the European Banking Authority disclosed that this retail and public-sector finance bank would have a ratio of core Tier One capital to assets of 10.4%, even after incurring notional losses from harsh simulated financial and economic conditions.
Other Wall Street firms would inject capital into the bad bank to keep it afloat while its assets can be unwound over a period of time in a way that wouldn't disrupt the financial system more than it already has been.
It will suggest incorporating a leverage ratio into bank-capital requirements, to supplement the existing risk-weighting of assets.
This rule (which went into effect near the 2007 market top and was suspended near the 2009 bottom) vastly magnified subprime mortgage weakness, effectively forcing banks into near self-perpetuating rounds of asset writedowns, putting pressure on bank balance sheets until they had to sell more liquid assets to meet capital requirements.
That necessary amount of capital is based to a certain extent on the types of assets the bank chooses to carry on its balance sheet.
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Since, for Korean banks, they are risk-free sovereign assets, the bonds are used to meet the bank's capital requirements and they are often held until maturity.
Raising further suspicions were comments by HSBC Chief Executive MichaelGeogheganMichael Geoghegan on a conference call Monday morning in London, in which he said that he would not rule out raising more capital and that the bank would consider adding the right mix of Asian assets, according to TradeTheNews.com.
Even by the government's optimistic accounting, only Bank of China currently meets the standards set by the Bank for International Settlements, which thinks big banks should have capital equal to at least 8% of their assets.
Cutting the amount of assets to be supported by a given amount of equity can also help a bank improve its capital ratios.
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