Mark to Market
I need some help with this. Maybe I'm missing the point.
The point of adding capital as a bank is essentially downgraded is to keep people from attacking the bank for money. As long as they're adding money as they go down, there's no panic.
If I hear that, as my bank is getting worse and worse off, its reserves are going down, I'm immediately heading to that bank, since the bank definitely cannot fulfill all claims.
The only problem arises when they can't get any more capital, at which point they will indeed have problems. You might keep your money in a bank bleeding capital, but count me out.
The problem of the Calling Run is based on uncertainty. Since no one knows what the assets are worth, investors call in the money, if they can, before the business goes bust. Again, in a Calling Run, you might be willing to value assets based on a predicted future, but count me out. I want to know what we can get now.