Commodities/Foreign exchange
Rallying cry for Italy
Italian banks are racing to catch up with their largest US and European competitors in risk modelling. Inspired by Mauro Maccarinelli, IntesaBci is leading the pack.
ABN’s Mulder calls for faster op risk implementation
Bankers were urged to accelerate implementation of operational risk management practices to better serve their institutions ahead of Basel II by Herman Mulder, senior executive vice-president for group risk management at Dutch bank ABN Amro, during a…
Platts launches US coal derivatives index
Platts, the energy information business and part of McGraw-Hill, has launched a series of coal derivatives indexes in the US to help market participants to price contracts in this developing area of the energy markets.
On a slow road
Many in the energy industry are touting Italy as the next country in Europe to fully open its energy market to competition. But on closer examination, the country has a long way to go if it is to emulate the UK, the Nordic region and Germany. By Robin…
Basel shortcomings: Danger lurks on the rocky road to Basel II
The Basel Accord proposals to define operational risk contain many fatal flaws, says Jacques Pézier. He argues that it would be better to focus management time on managing key risks than on developing op risk databases and measurement procedures.
Regulators want active dialogue on op risk
BASEL - Active dialogue between banks and their supervisors is the key to the continued development of approaches to managing operational risk, global banking regulators said in a much-delayed paper on op risk sound practices issued in December.
FASB: loan commitments must be treated like derivatives
The US Financial Accounting Standards Board (FASB) ruled last month that some unfunded loan commitments made by banks should be treated like derivatives and marked-to-market. The ruling came nearly nine months after Goldman Sachs first proposed the…
Basel II sets the pace for operational risk reform
Basel II is set to come into play in 2005, bringing a host of opportunities for vendors along with the new framework for banking supervision. Andrew Partridge examines the potential and some of the challenges for the suppliers and users of financial…
2002 the year ahead
Market overview
Utilities: Enron’s ripple effect
Cover story
Regulators want active dialogue on op risk
BASLE II UPDATE
The silver lining
Enron’s collapse could ironically give a boost to the telecoms market, as Enron Broadband Services bows out of the limelight. By Laurence Neville
Job moves
QUOTE OF THE MONTH: - “The FSA has successfully put the fear of God into senior managers” Simon Gleeson, a partner in the regulatory group at Allen & Overy in London, on the FSA’s new unlimited liability rules for risk management errors Source: RiskNews,…
Fallout for energy markets
Enron’s collapse led to short-lived increases in electricity and natural gas volatility. As the markets settle down, the question now is who will fill Enron’s shoes? By Kevin Foster
Software survey 2002 |
Some online risk management products failed to live up to expectations last year, but software vendors forge ahead, developing products that support fast-growing markets such as credit derivatives and CDOs, and tools to help banks meet Basel II…
Enron and systemic risk
Regulators worry that concentrating derivatives market-making in a few major dealers poses severe systemic risk issues. Could one big player’s failure break the whole system? David Rowe says Enron is an ideal test case, with some encouraging indications
JP Morgan accuses WestLB on $165m Enron swap
JP Morgan Chase has accused WestLB of failing to make payment on a $165 million letter of credit (l/c) backing an Enron-related swap. JP Morgan Chase made the dispute public, though it did not name West LB, instead merely referring to “a European…
Brokers allocate $4.6 million WTC disaster relief
The world’s seven leading interdealer brokers have determined which charity funds will receive the $4.6 million they raised as disaster relief for victims of the World Trade Center terrorist attacks on September 11.
Japan's non-performing loans undermining economy
Tokyo could be in danger of losing its standing as a top financial centre, unless efforts are made to restructure the economy and cure Japanese banks' vast non-performing loans problem, warned Bank of Japan official Hiroshi Nakaso, speaking at Risk…
Algo includes S&P for Basel II
Algorithmics is strengthening its credit risk management offering as demand grows for more comprehensive credit solutions. It is integrating a number of Standard & Poor’s credit data products with its analytical tools and developing a new module to help…
SAP makes play for risk territory
German software giant SAP is making a firm move into the risk management industry with the further development of its range of industry solutions. The Waldorf-based firm has already developed credit and market risk components for the financial services…