``Bair believes a prudent minimum capital ratio for big banks to maintain would be 8 percent, but 10 percent would be even better. The current international Basel III capital requirements call only for a 3 percent ratio, according to Reuters. "You don't have to be very efficient to make money by using a lot of leverage to juice profits then dump the losses on the government when things go bad," she explained, referring to big banks that took bailouts to salvage their bottom lines.''

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