Banks were rather happy to be upgraded and have lower capital requirements when their balance sheets looked and smelled of fresh roses. The profits that these rules allowed then (and which were cashed in, no questions asked) cannot be forgotten today.
Accountants are standing firm on this right now (the similarly pro-cyclical mark-to-market rules), and they are right. In the long run, we're all dead. John Maynard Keynes
The profits that these rules allowed then (and which were cashed in, no questions asked) cannot be forgotten today.