Understanding Goldman’s $687m trading loss

30 December 2024BanksBasel rules, Federal Reserve, Goldman Sachs, Value-at-riskNick Dunbar

The bank may look profitable to shareholders, but disclosures compiled by Risky Finance made it possible to uncover the story of this trading loss at Goldman Sachs

Dimon rolls trading dice with excess capital

13 June 2024Banks, Risk Commentarybank capital, Basel rules, Federal Deposit Insurance Corporation, Federal Reserve, JP Morgan, share buybacks, Stress tests, tradingNick Dunbar

The Fed softened its stress tests, which freed up bank capital, then came the Basel Endgame which would eat it all up again. Now, with the Endgame in doubt, JP Morgan has deployed its excess capital in trading bets

How CoCo bonds became indispensable for banks

9 May 2024BanksAT1, bank capital, Basel rules, CoCo bonds, corporate bonds, Credit SuisseNick Dunbar

A year on from Credit Suisse, AT1 securities remain an essential part of bank Tier 1 capital, as our corporate bond tool preview shows

Market RWAs, trading revenues and the Basel Endgame proposal

26 January 2024Banksbank capital, Basel rules, Federal Reserve, tradingNick Dunbar

Banks complain that customers will lose access to capital markets products, but the Fed isn’t buying their argument. Use Risky Finance data to assess the debate between the Fed and the banks.

How Covid forbearance gave banks a three trillion dollar boost

3 November 2020BanksBasel rules, CECL, Covid-19, Dodd-Frank Act, investment banking, tradingNick Dunbar

To keep banks operating smoothly during the pandemic, regulators eased capital requirements and boosted trading profits by underpinning financial markets. Did they go too far?

Goldman deploys slimmed-down model in retail push

17 December 2019BanksApple Inc, Basel rules, Goldman Sachs, qualifying revolving exposures, retail loansNick Dunbar

Goldman Sachs is venturing into consumer lending, with the help of Apple Card. Part of the strategy involves dramatic changes to the bank’s risk models

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?