Foreign exchange
Deutsche and Fleet unveil $40 billion OTC deal
Deutsche Bank and the US' FleetBoston Financial have revealed one of the largest over-the-counter (OTC) derivatives deals in history. The portfolio deal, with a notional value of about $40 billion, was executed in June to protect Fleet from short-term US…
Moody’s to launch RiskCalc for Japanese firms
The risk management unit of international rating agency Moody's has completed the development of its RiskCalc model for estimating probability of default for Japanese private companies.
Anti-hedger Newmont ups the ante in Normandy bid
The takeover battle for Australia’s leading gold mining firm, Normandy Mining, took another twist today, as a revised $2.2 billion bid from the US’ Newmont Mining, renowned for its anti-hedging policy, appeared to gain support from Normandy’s board.
DBS selects DerivaTech for FX trading
The Development Bank of Singapore (DBS) has announced a deal with DerivaTech, the Chicago-based provider of FX derivatives pricing solutions, as part of its strategy to update its FX derivatives pricing systems.
NY Fed notes high variations in stress testing across institutions
The magnitude of shocks used in stress testing by financial institutions varies substantially, the Federal Reserve Bank of New York (NY Fed) has said in a paper.
Goldman's Litzenberger retires
Bob Litzenberger, head of firm-wide risk management for Goldman Sachs, retired last week. Noel Donohoe, chief operating officer for the firm-wide risk management group, has replaced him.
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…
BOTCC strikes metals derivatives deal with CMXchange
Chicago's Board of Trade Clearing Corporation (BOTCC) has entered an agreement to process and guarantee the forward and over-the-counter derivatives transactions of internet-based metals exchange, CMXchange, located in Northfield, Illinois.
Stepping up for Basel
South Korea’s banks stand to be the hardest hit by the new Basel recommendations, forcing institutions to focus on improving risk management operations. Vikki Kunz reports from Seoul.
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…
Will Germany scupper Basel II?
How real is Germany’s threat to veto the proposed Basel II bank capital accord if the country fails to get the concessions it wants on the accord’s treatment of bank lending to small to medium-sized companies (SMEs)?
Regulators looking at possible changes to Basel II credit risk plans
Basel - Global banking regulators are studying possible changes to the credit risk proposals of the complex Basel II bank capital accord, after seeing evidence that banks face higher capital charges under Basel II than they do under the current Basel I…
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…
Could the Basel II op risk charge be cut again?
BASEL - Might banking regulators agree again to lower the capital charge for operational risk proposed under the controversial Basel II bank capital accord as part of horse-trading over the credit risk charge?
Building for Basel
The 2005 implementation date for the new Basel II Accord – already postponed by a year – is looming large. Whilst the banking sector is steadily gearing up for the proposed changes, there are fears that some institutions may be left behind.
Is there hope in the advanced measurement approaches?
Basel II is mistaken in assuming a stable relationship between expected and unexpected losses, argues Jacques Pézier in his second article on the Basel Committee’s recent operational risk working paper.
Building for Basel
The 2005 implementation date for the new Basel II Accord – already postponed by a year – is looming large. Whilst the banking sector is steadily gearing up for the proposed changes, there are fears that some institutions may be left behind.
Op risk capital charges to apply in expanded European Union
Brussels - The terms of the European Union’s proposed new capital adequacy rules for banks and investment firms will apply to all member countries of an expanded EU, officials with the European Commission, the EU’s ruling body, said in November.
A spanner in the works
The US and Germany are in a standoff over Basel II’s capital charge calculation for SME lending. Without a compromise this month, the issue threatens to derail implementation of the Accord and the European Directive.
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