Banks Whinge About Tougher EU Regulations to Reduce Too Big to Fail Risk
The Financial Times is a bit too sympathetic to poor oppressed banks facing tougher EU safety rules.
Read more...Category Archives: Risk and risk management
Wells Fargo’s Management by Magical Thinking Comes Up Short in the Cover-Up Category
The more the press digs into the the sordid details of the Wells Fargo fake account scandal, the more rancid the stench.
Read more...The New Extreme Reality of Floods
Floods are an under-recognized economic and political risk….
Read more...Deutsche Bank and a $10Bn Money Laundering Nightmare: More Context Than You Can Shake a Stick at
Deutsche Bank’s $10Bn: the shell company back story
Read more...Major Insurers to G20 Nations: Stop Wasting Time, Phase-Out Fossil Fuel Subsidies by 2020
Insurers and finance pressure governments to end $444 billion in fossil fuel subsidies.
Read more...Big Wall Street Firms Make Lame Excuse for Volcker Rule Non-Compliance, Ask for Additional Five Year Extension
Big Wall Street firms like Goldman and Morgan Stanley offer “dog ate my homework” excuses for failure to comply with the Volcker Rule.
Read more...Even Endowments Like Harvard, Former Top Investors in Hedge and Private Equity Funds, No Longer Beat Boring Stocks and Bonds
Even supposedly oh-so-savvy endowments can’t eke superior performance out of private equity and hedge funds any more.
Read more...Bill Gross Chides CalPERS for Its 7.5% Returns Assumption; Illinois Set to Lower Target
More and more experts are taking CalPERS and other public pension funds to task over their barmy return assumptions.
Read more...COBOL and Legacy Code as a Systemic Risk
More on why legacy code at major banks is a ticking time bomb.
Read more...Is Brexit Moment a Lehman Moment? Fear Factor in Financial Crises
Comparing the market reaction to Brexit with key events during the crisis.
Read more...Beyond Credit Rating to Stabilizing an Unstable Economy
The third part in a three-part series on how to fix what is wrong with credit rating agencies.
Read more...Instability in Capitalist Economies and a Better Way to Think About Credit Risk
Instability in capitalist economies comes from the quest for profit. And that has implications for credit ratings that are often ignored.
Read more...Brexit Risk and Nigel Farage: We Know Where His Mouth is (“England”), But is His Money Offshore?
Is Nigel Farage’s wealth offshore? Is that why he’s so calm about Brexit?
Read more...Need a Loan in China? Hand Over a Nude Photo
Lender demands in China as a sign of credit stress.
Read more...Cyber Risk as Systemic Risk
The threat to the financial system posed by cyber risk is often claimed to be systemic. This column argues against this, pointing out that almost all cyber risk is microprudential. For a cyber attack to lead to a systemic crisis, it would need to be timed impeccably to coincide with other non-cyber events that undermine confidence in the financial system and the authorities. The only actors with enough resources to affect such an event are large sovereign states, and they could likely create the required uncertainty through simpler, financial means.
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