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News & Commentary
Content tagged with Risk Management posted in March 2013
Investors Head Back to Safety of Bonds — Poll
News  |  3/28/2013  | 
Global investors grew more cautious this month, reacting to the crisis in Cyprus by adding to safe-haven bond positions, though cash buffers fell to a two-year low, Reuters monthly poll of asset managers showed on Thursday.
Dark Pools Open Up About Surveillance Methods
Commentary  |  3/27/2013  | 
Brokers operating dark pools have come out with more sophisticated methods for preventing trades at bad prices and profiling client behavior — both in response to buy side concerns and regulatory scrutiny.
HFT: Makings of an Evil Empire
News  |  3/26/2013  | 
Wall Street's reputation may be damaged, but don't blame all of the industry's woes on high-frequency trading.
For The First Time In Decades, Investment Bankers See Pay Shrink
News  |  3/26/2013  | 
Average pay-per-head at U.S. and European investment banks has dropped compared to other sectors for the first time in a generation, according to new data.
Goldman Sachs, Berkshire Amend Crisis-Era Warrant Deal
News  |  3/26/2013  | 
Goldman Sachs Group Inc will give Berkshire Hathaway Inc millions of shares in the bank in place of warrants that date to the financial crisis, a deal that saves Berkshire money upfront and reduces dilution risk for Goldman.

Canada's Top Six Banks to Get Capital Surcharge as of 2016
News  |  3/26/2013  | 
Canada's banking watchdog said on Tuesday it sees the country's six largest banks as being of systemic importance to the domestic economy and that it will make them keep 1 percent more capital on hand starting January 2016 to protect them from financial disruption.

JP Morgan and Heuristics – Lessons from the Whale
Commentary  |  3/26/2013  | 
JP Morgan's decisions in handling the London Whale incident can be traced to a series of cognitive biases and limitations, writes Andrew Waxman, who analyzes bank executives' responses based on the work of psychologist Daniel Kahneman.
Inside the World's Largest High Rise Data Center
Slideshows  |  3/22/2013  | 
A new 1 million square foot high-rise data center in an old Verizon switching building at 375 Pearl Street opened this week. Here is a view of some of its features -- in pictures.
Cyprus Ruling Party Says Close to a Solution on Bailout Crisis within EU Rules
News  |  3/22/2013  | 
A solution to Cyprus's bailout crisis within the framework set down by the European Union may be possible within "the next few hours", the deputy leader of the island's ruling Democratic Rally party said on Friday.

The Glamorous Personal Assistant and Her Hedge Fund Boss’ Amex Cards
News  |  3/21/2013  | 
Nearly one million dollars later, Ukrainian beauty Renata Shamrakova admitted in Manhattan Supreme Court to embezzlement while working as the personal assistant to hedge fund manager Todd Meister.
Minding the Boys: Operational Risk on the Trading Floor
News  |  3/21/2013  | 
Bad lads, poor handwriting and preening managers - let's take a look at operational risk on the floor of a London brokerage.
ECB Gives Cyprus Bailout Ultimatum, Banks Face Cutoff
News  |  3/21/2013  | 
The European Central Bank gave Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its banks and inevitable collapse.

Shorter Settlement Cycles Coming to US?
News  |  3/20/2013  | 
The EU's move to T+2 will force the US markets to a shortened settlement cycle (SSC).
Funding the Bad Guys – Winning the AML Battle
Commentary  |  3/19/2013  | 
Successfully preventing terrorist networks and drug traffickers from utilizing the financial system to launder money will require greater cooperation between banks and law enforcement.
JPMorgan E-mails: "Stupid Quants"
News  |  3/19/2013  | 
When the London Whale's losses came to light, the higher-ups inside JPMorgan looked around to share the blame.
Cyprus Aims to Let Small Savers Out of Deposit Tax; Veto Still Likely
News  |  3/19/2013  | 
Cyprus's government proposed on Tuesday to spare small savers from a divisive levy on bank deposits but said it expects parliament to reject the measure, needed to secure an international bailout and avoid default and a banking collapse.

Big Banks on Track to Meet Basel Capital Rules Ahead of Time
News  |  3/19/2013  | 
The world's top banks have made big strides towards meeting tougher capital rules several years before full compliance is required, global regulators said on Tuesday.

U.S. Top Court Won't Hear Goldman Class Action Appeal
News  |  3/18/2013  | 
Goldman Sachs Group Inc suffered a defeat on Monday as the U.S. Supreme Court let stand a decision forcing it to defend against a class action lawsuit claiming it misled investors about the risks associated with mortgage securities.

U.S. Top Court Won't Hear Goldman Class Action Appeal
News  |  3/18/2013  | 
Goldman Sachs Group Inc suffered a defeat on Monday as the U.S. Supreme Court let stand a decision forcing it to defend against a class action lawsuit claiming it misled investors about the risks associated with mortgage securities.

Senate Hearing Sheds Light on JPMorgan Whale Trade
Commentary  |  3/15/2013  | 
Senator Carl Levin grills Ina Drew and other bank execs, accusing them of changing VaR and hiding data on risky derivatives trade from regulators.
Ex-JPMorgan Exec Drew Says Not To Blame For 'Whale' Losses
News  |  3/15/2013  | 
A former top JPMorgan Chase official blamed traders and managers who reported to her for bets that led to $6 billion in losses for the bank, telling lawmakers on Friday that her team changed projected losses and hid important information from her.

Fed Tells JPMorgan, Goldman To Improve Capital Plans
News  |  3/15/2013  | 
In a blow to two major Wall Street banks, the Federal Reserve told Goldman Sachs and JPMorgan Chase that they must fix flaws in how they determine capital payouts to shareholders.
JPMorgan Exec Drew Says Not to Blame for 'Whale' Losses
News  |  3/15/2013  | 
A former top JPMorgan Chase official blamed traders and managers who reported to her for bets that led to $6 billion in losses for the bank, telling lawmakers on Friday that her team changed projected losses and hid important information from her.

Senate Report: JPMorgan Ignored Risks — Best Reactions
News  |  3/15/2013  | 
A blistering Senate report rakes JPMorgan Chase over the coals for ignoring risk and hiding losses caused by the notorious London Whale.
What Will Mary Jo White’s SEC Look Like?
News  |  3/14/2013  | 
President Obama's choice to run the SEC has her strengths and weaknesses - but what exactly will Mary Jo White's stamp be on the embattled financial regulatory agency?
The 27-Year-Olds Are Taking Us Down (Again)
Commentary  |  3/14/2013  | 
The young financiers making the mistakes change but the flaws in the incentives and risk models at the heart of the global financial system remain basically unchanged.
Dimon Talks Cybersecurity With Obama
News  |  3/13/2013  | 
Part of the discussion will focus on getting C-level execs to take threats seriously.
State-Free Bank Safety Net Still Work in Progress-Regulators
News  |  3/13/2013  | 
Reforms to the world's financial system still fall short of ensuring that big and systemically important banks will not need to be bailed out by governments if they fail, regulators say.

Best Practices: Hedge Fund Network Security
Commentary  |  3/12/2013  | 
To maximize network and data protection, investment firms should abide by these best practices for maintaining a secure environment.
Funds Pick Credit Suisse over UBS on Revamp Risks
News  |  3/12/2013  | 
An overhaul that marks the end of Swiss bank UBS's big-league investment banking ambitions is prompting fund managers to switch their cash to shares in crosstown rival Credit Suisse.

New Opportunities For Hedge Funds
News  |  3/12/2013  | 
The door has opened for hedge fund admins — who, with few exceptions, continue to enjoy a view of the fund’s entire investment book — to offer new services traditionally provided by their prime broker.
Shaking Up the Risk Teams
Commentary  |  3/11/2013  | 
With billions lost in 2012, the risk culture of investment banks needs to change, starting with accountability and clear expectations for behavior. Banks must also tear down the walls that exist between market, credit and operational risk disciplines, writes Andrew Waxman.
Four Years Later, ‘Change’ Still the Key Word in OTC Derivatives Market
Commentary  |  3/11/2013  | 
Opaque financial products brought on the 2008 financial crisis. Opaque technology might bring about the next.
Using Big Data to Combat Big Risk
Commentary  |  3/7/2013  | 
How can financial institutions identify traders who are taking undue risks or investment salesmen who are fronting a Ponzi scheme? Andrew Waxman provides some insight.
Meet The Unquantables: The SEC's Quant Team Briefs the FBI
News  |  3/6/2013  | 
The jig’s up. The SEC’s team of quants is briefing the FBI and other regulatory bodies about how you trade and evade at high speeds.
It’s All JP Morgan’s Fault
News  |  3/5/2013  | 
A new Senate report on the bank's $6 billion loss finds that JP Morgan has some serious questions to answer.
LCH.Clearnet Sees Surge in Buy Side Activity
News  |  3/5/2013  | 
In the run up to Dodd Frank's March 11 deadline for mandatory central clearing,LCH.Clearnet experienced a record month in February, clearing over $22 trillion notional interest rate derivatives for 73 buy-side clients.
Investment Banking Is On The Verge of A Comeback – and Dimon Laughs Out Loud
News  |  3/1/2013  | 
Dimon makes a "classic" public quip in a heated exchange with an industry analyst.
Keeping Faith as Crisis Rumbles Again
News  |  3/1/2013  | 
The global financial crisis is clearly far from over but few long-term investors feel we are back to square one either.

Goldman Sachs Trims Risk-Taking to Lowest Level in 7 Years
News  |  3/1/2013  | 
Goldman Sachs Group Inc reduced its risk-taking for a third straight year, with potential losses from trading positions dropping to the lowest level in seven years.

Goldman Sachs Trims Risk Taking to Lowest Level in 7 Years
News  |  3/1/2013  | 
Goldman Sachs reduced its risk-taking for a third straight year, with potential losses from trading positions dropping to the lowest level in seven years.


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