Discussion:
The regulators at the FDIC decide to change the captial requirement in order to help prevent another bank crisis. They increase their required capital-to-asset ratio. In the space below explain how a bank can accomplish this -- how they could bring the bank into compliance with the capital requirement.
(Hint: I am not asking you to explain how to calculate the new ratio or the new new capital. I am asking you to tell what actions the bank will take to implement the required changes.)