by Regitze Ladekarl, FRM | Dec 11, 2023 | Risk Report
Higher interest rates are meant to be good for banks. It should increase their net interest income, their profits, and their stock price. Instead, this year, the large US bank stocks have fallen 15% whereas the rest of the stock market is up 19%. The Economist calls...
by Regitze Ladekarl, FRM | Dec 4, 2023 | Climate Risk, Risk Report
Bad COP, Good COP, Take 28 This weekend is the COP28 (which stands for the 28th meeting of the conference of the parties (COP) to the UN Framework Convention on Climate Change (UNFCCC)). It’s being held in Dubai, ten-thousands of people are flying in from all over the...
by Regitze Ladekarl, FRM | Oct 30, 2023 | Risk Report
Worry is within the purview of Team Regulator, and they do it well. This week, Gary Gensler of the SEC voiced his concern to FT that AI will cause substantial financial instability within the next decade. So here is his thinking: Financial institutions, especially...
by Regitze Ladekarl, FRM | Oct 23, 2023 | Climate Risk, Risk Report
It might not be the most spectacular Florida Man story, but it is one of the more concerning ones. In this year of extreme weather events—September was the warmest on record ever—insurance companies are adapting their business models to what is here and will keep...
by Regitze Ladekarl, FRM | Feb 3, 2013 | General
The last few years have seen significant volatility in the financial markets. This has highlighted a basic issue with the popular simulation models used in financial institutions: models have a hard time catching up with volatility. In other words, these models react...
