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News & Commentary
Content tagged with Risk Management posted in January 2013
Deutsche Bank Swallows $4 Bln of Charges for Clean Up
News  |  1/31/2013  | 
Deutsche Bank plunged to its worst quarterly loss in four years on Thursday after it took nearly $4 billion in charges to try and draw a line under a slew of scandals and boost its balance sheet without asking shareholders for cash.

Fidelity Contrafund Cut Apple Stake 3 Pct in December
News  |  1/30/2013  | 
Portfolio manager Will Danoff, whose $85 billion Fidelity Contrafund is the largest active shareholder in Apple Inc, trimmed his holdings in the maker of the iPhone by 3.1 percent in December.

Insider Trading Escalates At Hedge Funds, Reflecting Weak Controls
Commentary  |  1/29/2013  | 
The ongoing proliferation of insider trading cases at hedge funds points to the need for more transparency into investment decisions and trading processes. One way to stop the pattern is for hedge funds to form internal control groups that scrutinize the links between investment themes and material non-public information.
Video: The Future Of Data Management
News  |  1/29/2013  | 
Larry Tabb of TABB Group recently discussed with WS&T senior editor Melanie Rodier how firms are adapting their data management processes to the post-financial-crisis environment.
Italy's Monti Calls for Investigation of Monte Paschi Scandal
News  |  1/25/2013  | 
Italian Prime Minister Mario Monti called on Friday for an immediate investigation of a widening scandal at Monte dei Paschi di Siena over the historic bank's losses of nearly $1 billion in a series of complex derivatives deals.

ICE Eyes IPO of NYSE Euronext's Equity Exchanges in Europe After Deal Closes
News  |  1/24/2013  | 
InterContinental Exchange is buying NYSE Euronext to become a global powerhouse in derivatives, but European equities are a different story.
Investors Blinded By Banks' Calculation of Risky Assets —Basel
News  |  1/24/2013  | 
Material differences in the way banks define their risky assets is blinding investors' ability to make informed choices about where to put their money, a top regulator said on Thursday.

Financial Firms To Recruit More Risk and Tech Talent
News  |  1/23/2013  | 
Across the financial sector, the mood at the water cooler has improved, according to the latest survey from eFinancialCareers.
Peregrine Financial Fraud Loss Exceeds $200 Million: U.S. Prosecutors
News  |  1/23/2013  | 
Peregrine Financial Group's former chief executive embezzled more than $215 million from customers of his now-defunct futures brokerage, U.S. prosecutors said in court documents filed on Tuesday.
Re-Thinking Operational Risk on Wall Street
Commentary  |  1/22/2013  | 
With no let-up in the flow of operational risk accidents at major banks, firms are hiring more seasoned experts and throwing more resources at the function. But more work needs to be done.
FX Models Resurrected as Markets Emerge from Cisis Mode
News  |  1/22/2013  | 
Computer-driven funds are seizing on signals suggesting the herd-like "risk-on/risk-off" investment behaviour that has dominated currency trading since 2010 is fading.

Morgan Stanley Pay Ratio in Institutional Securities Drops
News  |  1/18/2013  | 
Morgan Stanley set aside 44 percent of adjusted revenue in its institutional securities business for compensation last year, down from 53 percent in 2011, Chief Financial Officer Ruth Porat said in an interview on Friday.

Q&A: Deutsche Bank Advises What To Do When Your Algo Fails a Risk Check
News  |  1/18/2013  | 
Deutsche Bank’s director, and head of algorithmic execution for listed derivatives and foreign exchange in the Americas, Greg Wood, recently sat down with WS&T to talk about some controversial risk measures that can safeguard the markets.
Lloyds Lacking Risk Controls? Weisel's Armstrong Ties Questioned, and More News of the Week
Slideshows  |  1/18/2013  | 
Lloyds Bank, following a few systems failures in 2012, is facing accusations from a former executive that risk controls are lacking, while Thomas Weisel is under scrutiny for ties to Lance Armstrong, HSBC can't get away from its money laundering settlement and "genius" trader risk top this weeks chatter in the press and on Twitter.
Goldman, Morgan Stanley to Pay $557 Mln in Foreclosure Case Deal
News  |  1/16/2013  | 
Goldman Sachs Group Inc and Morgan Stanley will pay $557 million in cash and other assistance to troubled borrowers to end a case by case review of foreclosures required by U.S. regulators.

JPMorgan Ordered to Improve Controls After 'Whale' Loss
News  |  1/15/2013  | 
U.S. banking regulators on Monday ordered JPMorgan Chase & Co to tighten its risk controls after the bank lost billions of dollars due to bad bets from a trader known as the "London Whale."

Peregrine Financial's Ex-CEO Faces Jan. 31 Sentencing
News  |  1/15/2013  | 
Peregrine Financial Group's former chief executive, who pleaded guilty to embezzling more than $100 million from customers of his futures brokerage, will be sentenced on Jan. 31, according to court documents filed on Monday.

JPMorgan Ordered to Improve Controls After 'Whale' Loss
News  |  1/15/2013  | 
U.S. banking regulators on Monday ordered JPMorgan Chase & Co to tighten its risk controls after the bank lost billions of dollars due to bad bets from a trader known as the "London Whale."

Funds Overweight Banks For First Time Since 2007: BofA Poll
News  |  1/15/2013  | 
Global investors turned overweight bank stocks for the first time in six years in January and boosted equity holdings to a two-year high, a survey showed on Tuesday.

How to Manage "Genius Trader Risk"
Commentary  |  1/14/2013  | 
After a series of trading blow-ups by rogue traders, meet "the genius trader," who can do even worse damage. With their superior intellect, big egos,and technical expertise, they can easily win over CEOs. But, can risk managers reign them in?
Q&A: JP Morgan Reveals Most Effective Risk Management Processes
News  |  1/14/2013  | 
JP Morgan's managing director of electronic execution, Neal Goldstein, recently sat down with WS&T to discuss how new FPL risk guidelines can address the financial industry's risk management pain points.
ParkRiver and MIK Team Up on Hedge Fund Compliance Solution
News  |  1/14/2013  | 
Hedge funds will turn to outsourcing providers to comply with new CFTC and NFA data reporting regulations, say ParkRiver and MIK.
ICAP Sells Stake in Traiana to Seven Investment Banks
News  |  1/14/2013  | 
ICAP has sold a stake in technology unit Traiana to seven top banks in the latest example of the world's largest broker partnering with clients on key projects in a bid to retain their long-term support.

Credit Suisse to Cut Bonus Pool by 20 Percent — Paper
News  |  1/14/2013  | 
Credit Suisse will cut its bonus pool for 2012 by 20 percent to around 2.3 billion Swiss francs ($2.52 billion), the fourth year in a row the Swiss bank has slashed payouts, a newspaper reported on Sunday.

Outgoing Eurogroup Chief Calls for Direct Bank Aid
News  |  1/10/2013  | 
The euro zone must use its rescue fund to inject money into banks with past debts, the president of the Eurogroup said on Thursday, warning anything less would undermine the bloc's crisis response.

Ten Most Significant Operational Risks of 2012
Commentary  |  1/9/2013  | 
Andrew Waxman takes a look at the most significant operational risks, including the Facebook IPO and Knight Capital Fiasco, that occurred on Wall Street in 2012.
How To Turn a Hedge Fund Into an Informer
News  |  1/8/2013  | 
The Financial Crimes Enforcement Network is working on a rule that could force hedge funds to blow the whistle on themselves.
BofA, Other Banks Move Closer to Ending Mortgage Mess
News  |  1/8/2013  | 
Bank of America Corp announced more than $14 billion of legal settlements over bad mortgages it sold to investors and flaws in its foreclosure process, taking the bank a step closer to ending the home loan problems that have dogged it for years.

Global Regulators Give In To Banks Over Risk Rule
News  |  1/7/2013  | 
Regulators have eased requirements for liquidity rule originally designed to protect the global financial system.
Numerix Updates Trade Capture App 'Portfolio' with Curve Modeling
News  |  1/2/2013  | 
The firm says the update will enable more accurate valuations for the mitigation of counterparty risk.

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