UK motor finance scandal reawakens ghost of PPI

11 April 2024BanksBarclays, Lloyds Banking Group, mis-selling, motor finance, NatWest Group, operational riskNick Dunbar

Our banking tool shows how payment protection insurance was a ‘slow burn’ op risk event that eventually cost UK banks $60bn. Could something similar happen with motor finance?

Handicapping Goldman’s 1MDB liabilities

30 January 2019BanksGoldman Sachs, operational riskNick Dunbar

The 1MDB scandal may result in a record legal settlement for Goldman Sachs. Risky Finance visualises the expected loss and explores how life-changing it might be for Goldman.

The Taser and the choke lead: How the Fed restrains big banks

9 August 2016FinancialsCCAR, Dodd-Frank Act, Federal Reserve, JP Morgan, operational risk, operational RWAs, regulation, Stress testsNick Dunbar

Operational risk capital for US banks is the highest in the world but the Fed resists formally testing op risk in its stress tests. One reason might be that the Fed would have to explain why the charges need to be so high.

ICAP, the half-way house on the road to Libor reckoning

27 September 2013Banks, MarketsICAP, interest rate benchmarks, litigation, operational risk, RBS, regulation, UBSNick Dunbar

What are we to learn from the charges that came out against interdealer broker ICAP and its staff over the manipulation of Libor rates? In three separate regulatory complaints, from the UK Financial Conduct Authority, US Commodity Futures Trading Commission and Department of Justice, once again we read emails and chat logs outlining intent to…

JPMorgan vs. Fukushima

30 August 2013Articles, Banksbanking, Basel rules, comprehensive risk measure, incremental risk charge, JP Morgan, operational risk, regulatory VaRNick Dunbar

After JP Morgan’s London Whale fiasco, the new trading book risk measures introduced by Basel after the financial crisis began to be supplanted by operational risk capital.

Are investment banks like nuclear power plants?

16 September 2011Articles, Banksbanking, operational risk, Societe Generale, trading, UBSNick Dunbar

We don't know the full details of how Kweku Adoboli lost $2 billion at UBS, but as I watch an industry in decline, an analogy springs to mind. Yesterday I had a long conversation with one of the former managers in the chain of command above Jerome Kerviel at Societe Generale. After losing his job…