''IN 2008 the Royal Bank of Scotland was the biggest bank in the world, with assets of £2.4 trillion ($3.5 trillion). It was sunk by a loss of £8 billion, or 0.3% of its assets''

From The Economist

''RBS and its regulators had let the simplest measure of balance-sheet strength, how much equity it had compared with its total assets, fall below 1%. Other lenders were in similar positions. In response regulators want banks to hold more capital. Banks in turn warn that new rules will choke credit. What light can history shed on the debate?''

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