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
Continue reading..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
Continue reading..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.
Continue reading..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?
Continue reading..Rob Carver reviews ‘The Rise of Carry’ by Coldiron, Lee and Lee
Continue reading..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.
Continue reading..Trading volume is much higher than economists predict. Quant Tom Hyer addresses the paradox from the perspective of relative value.
Continue reading..We use risk disclosures to analyse Goldman’s plunge in trading profits, and offer five reasons why revenues are unlikely to recover.
Continue reading..Junk bond funds are seeing record outflows. This has been described as a 'six-sigma event', in other words, six standard deviations away from the mean weekly flow, something that if normally distributed should only be expected once in millions of years. By definition that's unusual, but in the context of broader investment in riskier corporate…
Continue reading..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…
Continue reading..They spoke in a barely comprehensible 'patois' and adopted the trappings of consumerism, powered by new forms of technology. The forces of the law were nowhere to be found. Seeing high street institutions standing unguarded in front of them, they went in and pillaged without hindrance, prompting a mixture of anger and soul-searching among the…
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The bank may look profitable to shareholders, but ...
Bond investors have started to notice France's pol...