Operational risk
Banks face suit from US fund over mis-sold subprime loans
Fifteen banks accused of mis-selling mortgage-backed securities
Former Société Générale manager fined for insider trading
Jean-Pierre Mustier fined €100,000
DBS Bank agrees compensation for Hong Kong Lehman notes
Securities and Futures Commission accuses DBS of inappropriately selling high-risk products to low-risk profile investors
Goldman Sachs to pay $550 million to settle SEC lawsuit
US bank receives the largest fine the SEC has ever imposed on a financial entity
Three ordered by High Court to pay £115 million to UK FSA
Three ordered to pay up for accepting deposits without FSA approval
Change is the only constant
Regulatory change is inevitable, but those in Basel say they are taking it slow
Consortiums look beyond historical loss data
The financial crisis has shown historical loss data is not enough to help model and predict future op risk events, so some loss data consortiums are looking to include features such as scenario analysis results in their databases
Cebs updates op risk compendium; internal governance guide coming
Updated op risk compendium contains guidelines on op risk mitigation; internal governance guidelines on the way
Changing Hats, August 2010
The movers and shakers in the op risk professions
UAE firm sues MD over bonuses
Claims director mis-stated profits in order to collect bonus
How to make VAR go voom
An amended approach to value-at-risk that focuses on the drivers of risk and the use of agent-based modelling and simulation to capture the bounded rationality of human decision-making
Regulatory culture vultures start to circle in UK
Regulating for good culture and ethics at financial institutions is difficult because it is so subjective, but there are signs the UK supervisor is moving in that direction
Nigerian official says oil exports not at risk
Nigeria’s oil minister has dismissed market reports that the country’s oil supply will dramatically tighten following insolvency rumours and major plans for offshore drilling
UK Treasury regulatory reform paper hints at potential industry costs
More details emerge on how the new regulatory regime in the UK will be structured
Regulator-firm communication on AML 'harder and harder'
Temenos product director says “buffer” of regulation obstructs meaningful dialogue
BP’s oil spill to tighten global oil supply - report
BP’s Gulf of Mexico oil spill will tighten global oil supply as US oil production is set to wane, following expectations the disaster will lead to stricter regulation and closer scrutiny of drilling operations in the US, say Barclays Capital
Dodd-Frank: consumer protection regulator to increase retail op risk exposure
The planned Consumer Financial Protection Bureau could drive US focus on treating customers fairly for retail banking and credit products
Cultural shift needed to embed data security enforcement
Data security awareness lacking in financial services despite big budgets
Review imposes op risk capital charge on non-bank lenders
Mortgage lenders must hold capital for operational risk
Chinese banks’ AMA op risk projects on hold
AMA projects on hold as Chinese banks get to grips with credit risk portion of Basel II
UK FSA reorganisation happening quickly, says head of risk
The break-up of the UK Financial Services Authority is beginning to take shape, says the regulator's head of risk management
Aussie insurers face new risk-based capital requirements
New explicit requirement for operational risk capital proposed for life and general insurance firms in Australia.
HKMA issues incident response and management procedures
HKMA reminds firms of their requirements in response to incidents affecting customers
Europe hikes capital rules, slashes banker bonuses
Legislation adopted by European Parliament requires banks hold up to four times more capital to protect against trading risk; half of bankers’ bonuses to be paid in contingent capital