But on the other hand if they get a good grade that means they’re going to start reducing the cushion they have for a rainy day. Yeah yeah exactly which which I don’t get. And you can still be very profitable. I mean you know banking is back. The big banks in particular they could still get a nice healthy dividend without depleting their capital. There’s still plenty of room left to keep building incrementally those capital cushions so I don’t understand why the Fed would want to do this.

Well these are based on press reports we’ll see what actually happens but it’s from everybody I talked to. That is what’s going to happen. Your impression when a lot of new regulations went in on the big banks what we felt in the market was the inability for some of the smaller companies to get a loan that pushed it down to the community banks. What’s your view. I mean was that a good move or how’s it working out from your point. That’s a really good point because if you look at who is doing the lending during the crisis the smaller banks that had much higher capital cushions kept lending through this cycle where the big banks that were much more highly leveraged were pulling back on credit lines not refinancing loans. Yes you probably experienced some of that. So this idea that somehow lower capital is going to increase credit availability is just not right it through the cycle of better capitalized banks will do more lending and that was true with the small banks.

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So you know I guess I’m here for women and governance conference today one of the things I’ve been talking about is for boards just because the Fed says you can doesn’t mean you should and you should talk with managers about what happened in the last crisis how many customers lost their credit and how many customers had to be turned down for reifies.

We don’t want that to happen again. How well prepared are they. There are a lot of small companies that couldn’t get loans that just got kicked out. They did. They got 30 days to go find another bank. Exactly right. Which is why they changed some of the rule making smaller banks and lending Degas’s if you will get the entire financial system right now. Where do you think is the greatest risk which ends.

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