Regulators demand a certain cushion of net worth before a loan book can be expanded.
As regulators demand more capital for riskier activities and companies and fund managers gravitate toward the bigger, more solid banks, some players are dropping out.
To Krumholz, this is part of a larger tapestry of unexpected clinical trial results that should make doctors, patients and regulators demand more hard information about whether drugs reduce symptoms or prevent problems like heart attacks and deaths.
Analysts told the newspaper that Mr Mittal may wait and buy iron ore assets from Rio at a later date should regulators demand the miner sells part of its business to allow a merger with BHP to go ahead.
Fannie and Freddie, whose shares sank to levels not seen since the mid-1990s on Monday, rebounded somewhat on Tuesday after their chief regulator was quoted in wire reports saying it was unlikely regulators would demand more capital for the mortgage giants.
But such capital outlays will be required not just to meet the expected upswing in power demand but also to satisfy utility regulators at both the national and state levels.
But Colonial started to falter in 2007 and 2008, having run-ins with its regulators and ultimately facing the demand that it raise capital.
This chart reported by the folks over at the Volokh Conspiracy illustrates the difficulty of determining whether lawsuits, regulators, manufacturers or consumer demand reduce liability.
FORBES: Study Pins Higher U.S. Liability Costs On Lawyers, Court System
And it likely would not have happened if the responsible governmental regulators had the capacity and will to demand world class safety standards.
Banks meanwhile say there is not enough demand from quality borrowers and that approving loans is more difficult because regulators are demanding that they be stricter.
FORBES: Small Business Credit Crunch: A Supply or Demand Problem?
"It's vital that those European rules give national regulators the discretion to add to the Basel requirements when national circumstances demand it".
In essence, Brito and Watkins are calling for lawmakers and regulators to follow their own playbook, do their own homework, demand evidence, and employ common-sense strategies of critical thinking and decision making.
Demand for clearing transactions are expected to increase over the next few years as regulators force banks and other parties to channel trades through regulated clearing houses to ensure their risk positions can be better monitored.
But half of them are nearing their retirement, although regulators will likely extend their lives to meet an expected increase in electricity demand.
FORBES: After Fukushima, U.S. Seeks to Advance Small Nuclear Reactors
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