Risk magazine
A counter-cyclical Basel II
The Basel Committee on Banking Supervision is making various changes to the Basel II framework in the wake of the financial crisis. But Ryozo Himino argues there should be greater focus on incorporating a built-in stabiliser into the Accord
Time to take stock
Plenty of pressure will be put on financial institutions to strengthen risk management processes in the wake of the financial crisis. However, firms might be better served focusing on getting the basics right, rather than necessarily doing more, argues…
The short story
The UK Financial Services Authority ended its ban on short selling of financial stocks on January 16. How have financial stocks performed since the restrictions were lifted? Christopher Whittall investigates
Plugging the gaps
The various post mortems into the causes of the financial crisis have highlighted weaknesses in bank risk management practices. In particular, many banks approached risk on a silo basis, with little attention given to firm-wide exposures. Are banks…
FDIC: 252 US banks now at risk
The US Federal Deposit Insurance Corporation (FDIC) now has 252 banks on its "problem list", and the industry has dipped into the red for the first time in almost two decades.
Fannie Mae hit by $25.2 billion loss in Q4
Government sponsored entity (GSE) Fannie Mae announced losses of $25.2 billion for the fourth quarter of 2008 yesterday, linked to mortgage defaults, falling home prices and ailing credit markets. The poor showing was driven by $12.3 billion in net fair…
New chairman and derivatives head for NYSE Liffe
Hugh Freedberg will succeed André Villeneuve as chairman of London-based derivatives exchange NYSE Liffe.
US government to own 36% of Citigroup
The US government's stake in Citigroup will swell to at least 36% through the conversion of just under half of its existing preferred share holdings, the ailing financial group and the US Treasury have confirmed.
CME appoints Boberski to develop OTC offering
David Boberski was today named managing director of over-the-counter research and new product development at the Chicago Mercantile Exchange (CME) Group.
Tranter leaves BNP
Nick Tranter, BNP Paribas' London-based European head of equity derivatives flow sales, left the bank this week. His responsibilities will be taken on by Jean-Eric Pacini, formerly head of structured product sales for the bank in London.
Eastern European sovereign CDS spreads narrow
The cost of credit protection on the sovereign debt of eastern Europe states fell in early trading today, while rising on US insurers.
€24.5 billion international bailout for eastern Europe
The largest multilateral lenders in eastern Europe today pledged €24.5 billion over the next two years to support the region's banking sectors affected by "global financial retrenchment".
Lloyds asset protection scheme talks stall as HBOS losses confirmed
Lloyds Banking Group, which today confirmed that Halifax Bank of Scotland (HBOS) lost £10.8 billion in 2008, remains locked in talks with the UK government about participation in its asset protection scheme.
US banks told: prepare for 47% drop in house prices
The US Treasury told the country's major banks they must ensure their capital levels can cope with a severe recession, including unemployment over 10% and an overall 47% drop in house prices from their peak in 2006.
Speculation over regulation mounts as Madoff lawsuits rack up
European investment funds are preparing to face tighter regulation in the wake of the Madoff scandal.
CDS spreads narrow on US and European financials
The cost of credit protection on US and European banks fell in early trading today, while remaining high on Latin American and eastern European sovereign debt.
UBS replaces CEO
UBS named Oswald Grübel as its new group chief executive today after Marcel Rohner left the bank.
Low recovery rates set for Ferretti LCDS
At an auction held today, data vendor Markit and broker Creditex determined a final settlement value of 10.875% for loan-only credit default swaps (LCDS) referencing Italian luxury yacht manufacturer Ferretti, meaning protection sellers would need to pay…
Madoff feeders' due diligence attacked as lawsuits mount
Investors that lost billions of dollars to Bernard Madoff have filed several class-action lawsuits claiming massive due diligence failures by fund managers who placed money into the alleged $50 billion Ponzi scheme, even though scant detail has emerged…
RBS signs up to UK's asset-protection scheme
Royal Bank of Scotland (RBS), which today announced 2008 losses of £24.1 billion, has become the first bank to sign up to the UK government's asset-protection scheme, which will offer insurance against future losses in return for a promise to increase…
De Larosiere calls for ECB to lead European macro supervision
The European Central Bank would lead a new body intended to provide early warning of future financial crises, under proposals presented to the European Commission today.
New single-name CDS sparks hedging worries
Plans to reshape the US single-name credit default swap (CDS) market are causing concerns among some credit portfolio managers, due to a limit on their ability to get capital relief for hedges under Basel II.
Ambac pares losses in Q4
Ambac saw a fourth-quarter net loss of $2.3 billion, a slight improvement on its performance in the third quarter of 2008, when it lost $2.4 billion and a notable improvement from its showing in the fourth quarter of 2007, when it shed $3.3 billion.