Soros' plan for US bail out

Soros spells out details of how he would like the US's Tarp (troubled asset relief programme) to work:

• The regulators must work out how much capital banks would need to meet 8% capital adequacy
• The government must infuse required capital through 5% convertible preferred shares
• Fed should guarantee interbank borrowings by banks eligible for recapitalisation
• Capital adequacy requirements should be lowered to facilitate fresh lending
• Home mortgages need a plan to limit foreclosures

This is pretty much along the lines of what the UK has done. I am not sure that lowering capital adequacy requirements is desirable until the storm has blown over. Banks must have enough capital to prevent another bout of loss of confidence in the event of some fresh problems.