European banks are looking for ways to modify their risk adjusted weightings of assets on their balance sheets in order to fill the capital requirements imposed on them by the latest European agreement.
Apparently they don't want to reduce bonuses and wages and they know it won't be easy to raise capital in financial markets given the circumstances so they again are turning to creative accounting to right the shortfall. This falls in the same category as FASB allowing banks to "relax" mark to market accounting. Neither of these issues, although legal, will actually allow investors to get a clear picture of what is going on in a bank balance sheet.
Bloomberg article here.
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