Will billion-dollar fines skew op risk for years to come?
Huge losses from conduct risk failures will have long-lasting effect on risk modelling and capital calculation
Bank of America has raised the bar yet again: its $16.65 billion regulatory settlement has broken records for the largest penalty so far imposed for malpractice before and during the financial crisis. Even in a month that saw several other 10-figure fines the Bank of America payment overshadows the rest of the data. But it's not the only truly enormous settlement this year, and the true cost, once legal expenses and internal reforms are included, will be higher still.
And the end is still far
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