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Regulators’ margin model rules too lax – BlackRock exec
Risk USA: EU anti-procyclicality rules like “putting a curtain over a draughty window”
Isda study reveals size of Covid’s trading book capital hike
Procyclicality led to aggregate 25% rise in market, CVA risk-weighted assets
UBS gears up for another tilt at clearing
Swiss bank makes senior hires and upgrades tech platform ahead of Brexit and leverage offset
Latest
Quotes
The Fed really stepped in and seriously greased the wheels of the bond and repo markets. Without that, I think we would have been in the depths of a really big market disaster.
Jerome Kemp says the futures industry flirted with disaster during the Covid market meltdown.
The parameters in which you were operating before don’t exist any more. The stimulus or other items are just going to break the bounds of any model that was built pre-pandemic.
Joseph Silverberg, head of capital management and stress-testing at Deutsche Bank
You put the onus on banks to report, but enforcement authorities don’t have the capacity to handle this volume of reports. It’s a monumental waste of resources.
A fincrime executive at a large global bank says government agencies have much to answer for in the fight against money laundering.
Editor's Choice
UBS gears up for another tilt at clearing
Swiss bank makes senior hires and upgrades tech platform ahead of Brexit and leverage offset
Big Figure
Covid comparisons
Comparing the backtests on the S&P 500 using Risk.net’s latest set of crowdsourced stress scenarios (constructed by polling readers, and run once again in conjunction with RiskThinking.ai) and the last underlines how views have become more extreme. When Risk.net first asked participants to predict the impact of Covid in late March, the S&P was nearing a multi-year low of 2,191. Yet the range of views then – when markets were still in freefall, and central banks and governments had yet to firm up pledges of trillions of dollars in ultra-cheap credit and other support measures – was far narrower than it is now.
Read the full article7 days in 60 seconds
Fallbacks, Libor and the cultural risks of lockdown
The week on Risk.net, November 14-20, 2020
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