Old(er), Underserved, and Not That Smart

by | Aug 5, 2024 | Risk Report

A couple of weeks back, Hurricane Beryl pummelled her way from the Caribbean, through the Yucatán peninsula, and onto the Gulf Coast of the US. The current death toll is 64. Damages are estimated to $6.2 billion. Beryl made its US landfall in Texas, and Houston was...
In Their Swings Era

In Their Swings Era

by | Jul 22, 2024 | Risk Report

Back in 1967, there was a Danish variety show featuring a song called The Swings and The Carousels. The chorus ran along the lines of: We need to earn on the swings What we lost on the carousels Referring to the old amusement park, Tivoli, in Copenhagen, it is...
How Deep Is Your Loss?

How Deep Is Your Loss?

by | Jul 15, 2024 | Risk Report

Banks should hold enough capital. That is hard to argue with no matter if you are on Team Regulator or Team Bank. Where it gets a little more contentious is how much is enough.   Burned by the Global Financial Crisis in 2008, regulators far and wide tend to equate...
This Is An Inter-yen-tion

This Is An Inter-yen-tion

by | Jun 24, 2024 | Risk Report

Many of us know the chain of events set in motion, when you tell a toddler in very specific terms what they should NOT do. Sometimes financial markets act in the same way. In this year’s yen episodes, the grown-up is the Japanese top foreign-exchange official, Masato...
Conscious Uncoupling

Conscious Uncoupling

by | Jun 17, 2024 | Risk Report

Yes, I am that old.* Sometimes, when a group of big economies have been through some tough times together, but then find they are recovering at different speeds, they might have to start lowering their interest rates before the biggest one is ready. That doesn’t mean...