1. Go back to Basic
Go back to basics, to analyze your balance sheet position by type, size and complexity both before and after you have hedge them.
(Don't assume that ratings are always current and if they are, remember that they can change quickly.
2. Account properly for liquidity risk in two ways
1) Increase internal & external capital charges for trading-book positions.
(These are two low relative to banking-book positions and need to be recalibrated.
2) Bring back liquidity reserves.
Over time fair-value accounting practices have disallowed liquidity reserves whose size is set in scale to the complexity of the underlying asset. That would be better than questioning the whole principle of mark-to market accounting, as some banks are doing
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