Isn't this more of a "give them an inch they'll take a mile" sort of thing? The Basel 3 capital reserve system is based in objective valuation which Menger pro

Isn't this more of a "give them an inch they'll take a mile" sort of thing? The Basel 3 capital reserve system is based in objective valuation which Menger proved false. This occurs indirectly through the weights, and reporting loopholes which prevent marked to market valuations. It seems to me that the GSIBs, and primary dealers simply want to notch the ratchet a bit tighter by absorbing the next dealer to fail which iirc the conensus seems to be BofA being up next.