ms. rivlin, right? >> but is that -- is assets -- what's the cap?we know we have one on deposits and that's a percentage one. of course, what would be -- would it be assets? >> yeah, well, its assets. it's either total dollar assets or as a percent of gdp. i'm saying 1% of gdp total assets would be the cit threshold. >> wachovia failed. countrywide failed. they were pretty big. it did not cause -- we had a regime. what is your sense of this? >> i think it would be difficult and counterproductive to try to break up private institutions. i don't think that makes a lot of sense. it makes a lot of sense to raise the cost of being large and larger and i don't think there needs to be any cap at all. you get larger. you pay more because you are relying on the system in a more significant way. >> and i assume the rationale for that is that if you raise capital, reduce leverage, particularly in a kind of -- you are making failure less likely and less costly if it happens. >> and in a sense, and also, i think you might want to also in addition to capital rati

ms. rivlin said about how to target leverage and control leverage.gain, through something i can to a modern version of marginal requirement is a very appealing in this situation. it is about site. cit group is $80 billion in assets. treasury and other before deciding not to bail it out. i think what we see now that was a smart decision. i think the market can take care of it. the line seems to be about $100 billion in assets. financial institutions about $500 billion in assets right now clearly benefit from some sort of implicit government guarantee going for it and that is a problem. that distort incentives exactly as many members of the committee emphasized at the beginning. i think capital starner requires. you can also do this with a large insurance premium for bigger banks. what have they cost, what has the good of risk management of these major banks across the united states? i would estimate that our privately held government debt will rise from around 40% gdp where it was initially to around 80% of gdp as a result of all the measures direct a