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VAR exceptions reflect volatile season

Investment banks reported increased numbers of high trading losses in the third quarter of this year, highlighting the volatility in the financial markets and casting doubt on their risk modelling.

HSBC plans $45 billion SIV restructuring

HSBC is to bail out two of its structured investment vehicles (SIVs), Cullinan and Asscher, blaming "the inability of most SIVs to fully roll over their senior funding in the form of commercial paper or medium-term notes" and "a continued decline in the…

Covered bond market reopens cautiously

Market making in the European interbank covered bond market reopened this afternoon, after being closed since last week, but with new conditions imposed by its governing body, the European Covered Bond Council (ECBC).

Trichet predicts tighter regulations on banks

The president of the European Central Bank, Jean-Claude Trichet, has blamed the summer's crisis on opaque financing models and mistakes by rating agencies, and has called for an overhaul of financial regulation.

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