a capitalization rate at that time of 4%. Banks should be at 8% for minimum, 9 for safe, 10 and above for well capitalized.
During an exit exam with our bank regulators during that time we asked the question if we were at 4% that morning what the conversation would be like (we were at 12% so extremely well capitalized) and the regulator (not knowing we were referring to Wells Fargo's position at the time) told us that "If you were at 4% this morning, we would be talking through the scenarios to shut you down.