The freedom to use value-at-risk models in calculating capital requirements was attractive to banks because it generally reduced those requirements. However, it could have the consequence that as market prices move against a bank and become more volatile, they may eventually either have to liquidate positions or to raise more capital to preserve them, a slow and often unwelcome process. Even if banks were not close to being forced to make this choice, the increased prominence of value-at-risk may have contributed to pressure to liquidate positions in the face of adverse price movements and of increased volatility (Dunbar 2000; Meriwether interview).

Donald MacKenzie, An Engine, Not a Camera, loc. 1050