SMA proposal fires up op risk managers
Banks say backward-looking SMA is easily gamed and will lead to high and volatile capital charges
One former regulator isn't happy about the Basel Committee on Banking Supervision's plans to reform regulatory capital rules for operational risk.
"Are you going to go to Nasa and tell them, ‘The way you do all your rocket launches is really too complicated. The average American doesn't understand it. You need to simplify it so that we can all understand how you're launching those rockets?' That's insanity."
He's not alone. A consultation released in March on the committee's proposals has
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