Operational risk capital – for so long the bane of big US banks – may finally have passed its high-water mark, as the pace of fines racked up for crisis-era misdeeds starts to abate.
Three of the big five US banks reported falls in operational risk-weighted assets (RWAs) during the first quarter of 2018: at Citi, the drop was $2.5 billion; at Goldman Sachs it was $3.3 billion; at Morgan Stanley, $178 million (see figure 1). The totals for JP Morgan and Bank of America Merrill Lynch were
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