News/Risk management
US banks reveal 'mandatory' status in CP3 comments
Many US banks chose to reveal that they were designated so-called 'mandatory banks' in their responses to the third consultative paper (CP3), issued by the Basel Committee on Banking Supervision in late April.
Basel II delay looking increasingly likely
The financial industry's drums are beating strongly for a further delay to the implementation deadlines for Basel II, and such a delay is beginning to look increasingly likely, according to those close to the Basel Committee on Banking Supervision.
Black-Scholes models lose favour for employee stock options
Companies around the world are likely to come under increasing pressure to change their valuation methodologies for employee stock option schemes from traditional Black-Scholes models to binomial approaches, according to the research department of Bear…
Basel Committee releases interest rate risk document
The Basel Committee on Banking Supervision released another draft of the "Principles for the Management and Supervision of Interest Rate Risk" this morning.
Gain Capital takes $10 million investment from Tudor
Gain Capital, the foreign exchange trading platform aimed at middle-market traders, has secured a $10 million investment from Tudor Ventures, the venture capital and private equity arm of Tudor Investment.
Reuters enters the op risk software market
NEW YORK - Reuters is the newest player in the op risk software field. The global information technology company is preparing to launch an as-yet-unnamed op risk software solution in the next two months, says Julian Fisher, head of operational risk at…
Lloyds TSB selects SAS to manage risk
UK financial services group Lloyds TSB has installed banking risk management software from SAS, a North Carolina-based data management software vendor. The technology will help the bank to meet Basel II credit risk compliance and further automate its…
Goldman Sachs CP3 response published by accident
The five-page response drafted by Goldman Sachs executives to the Basel Committee on Banking Supervision's third consultative paper was published on the internet in mid-August by mistake when the committee posted other comments.
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Japan CDOs of ABS set for growth
New angles
BoA: single-tranche CDOs compensate well for their risks
The additional spread available from single-tranche collateralised debt obligations (CDO) – compared to other portfolio credit products - more than compensates investors for the particular risks associated with tranched products, claims Bank of America …
IIB Bank selects SAS for Basel II credit risk compliance
Ireland-based IIB Bank, a fully owned subsidiary of KBC Bank, has licensed risk management software from North Carolina-based data management software vendor SAS to meet Basel II credit risk compliance.
European Commission welcomes IASB compromise
The European Commission has welcomed yesterday’s International Accounting Standards Board decision to try to allow for ‘macro-hedging’ as part of proposed new accounting standards, due to come into place in 2005.
IASB relaxes stance on 'macro-hedging'
The International Accounting Standards Board (IASB) today relaxed its stance on 'macro-hedging' with its latest proposal to improve derivatives accounting.
IASB relaxes stance on 'macro-hedging'
The International Accounting Standards Board (IASB) today relaxed its stance on ‘macro-hedging’ with its latest proposal to improve derivatives accounting.
Basel Committee releases "Know Your Customer" paper
The Basel Committee on Banking Supervision has published a consultative paper designed to provide banks with guidance and best practices on "know your customer" (KYC) risks.
IIF says much work remains on Basel II
The Institute of International Finance (IIF), the Washington, DC trade association of financial institutions, contends that Basel II still has a long way to go before it can be finalised, in its response to the Basel Committee for Banking Supervision’s…
Basel Committee releases home-host paper
The Basel Committee on Banking Supervision released a paper today, "High level principles for the cross-border implementation of the New Accord".
STP break puts banks at risk
Third-party banks using the continuous-linked settlement (CLS) service may be subject to increasing operational risk as a result of a breakdown in straight-through processing (STP), reports Risk's sister publication FX Week .
Ziff transfers to Mercer Oliver Wyman from Nera
Bradley Ziff has joined Mercer Oliver Wyman (MOW), a subsidiary of Marsh & McLennan, as a director to help with the consultancy’s global efforts in operational risk consulting.