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Collins wedge pushes internal credit models towards irrelevance

2 November 2018BanksBasel rules, Dodd-Frank Act, Federal Reserve, JP Morgan, PNC Financial, Wells FargoNick Dunbar

The Collins amendment has become a binding capital constraint for the biggest US banks. Does this support the Fed’s argument for rolling back the advanced approaches provisions of Dodd-Frank?

How Goldman punished its FICC failures

1 August 2018Banksbonuses, Goldman Sachs, remuneration, tradingNick Dunbar

As David Solomon replaces Lloyd Blankfein, Goldman Sachs is rejigging its trading business in the wake of lacklustre results. Our new remuneration tool shows how the bank punished underperforming staff last year.

The Fed’s troubling stress test calculations

12 July 2018BanksCCAR, Stress testsNick Dunbar

The Fed’s annual stress tests and capital analysis amount to a contest between the regulator’s models of large banks in a crisis and those of the banks themselves. The latest disclosures suggest troubling flaws in the Fed’s calculations.

US banks grow assets beneath regulatory radar

17 April 2018Banks, Risk CommentaryBank of America, Citigroup, JP Morgan, Wells FargoNick Dunbar

Since adopting Basel III reporting standards three years ago, the biggest US banks have started reducing risk weights while increasing lending. Is this a reflection of a healthy US economy or European-style gaming of internal models?

Putting employees over shareholders doomed Deutsche’s Cryan

6 April 2018BanksNick Dunbar

Deutsche Bank’s inability to control its investment bank compensation bill may have doomed John Cryan, analysis of pay disclosures suggests.

Can Goldman recover its trading mojo?

9 March 2018Banks, Risk CommentaryBasel III, electronic trading, Goldman Sachs, MiFID 2, P&L distribution, trading, Value-at-risk, Volcker RuleNick Dunbar

We use risk disclosures to analyse Goldman’s plunge in trading profits, and offer five reasons why revenues are unlikely to recover.

Steinhoff, the banks and the bezzle

2 March 2018Articles, Banks, Risk CommentaryNick Dunbar

A scandal at South African group Steinhoff has hit the large banks that lent $1.6bn to the company’s largest shareholder. Differences in the way banks treated the exposure highlight hidden risks in the financial system.

Did EU banks really ‘slash’ exposure to the UK?

13 December 2017Articles, BanksBrexitNick Dunbar

A €350bn decline in the exposure of EU banks to UK counterparties was widely interpreted as an exodus sparked by Brexit, but closer analysis of the data refutes this interpretation.

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