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...
Whisk the Risk Away

Whisk the Risk Away

by | May 6, 2024 | Risk Report

A bank has a credit card portfolio. It is happy about that. Fees are good and higher rates mean more interest coming in. There is just one little bummer, and that is the capital it has to hold in reserve incase any cardholders default. A private credit firm has a...