It’s impossible to separate Deutsche Bank’s ongoing regulatory compliance shortcomings from its business exigencies. The recent and unusual censure from the Federal Reserve highlights the bank’s inexorable pressures.
The latest Eurozone bailout has effectively sentenced the country to a generation of vassalage, creating a financial serfdom. Weak growth and regulatory shortcomings will only invite the next crisis.
The HKMA and its new regulations fail to recognise that virtual banking has long existed. Redundant and irrelevant rules only hold back fintech development in Hong Kong.
Financial regulation is beginning to mirror the boom and bust cycles of the market as participants lobby regulators to loosen capital requirements – this at what appears to be the peak of the post-crisis economic growth cycle.
Proposed changes by the Trump Administration to the Volcker Rule are already controversial. Linking cause and effect to risk management have only resulted in an excessively complex regulation that is proving difficult to reform in a “too big to fail”...
Criminal charges brought by Australian regulators against bankers in the ANZ cartel case represent a challenge against practices traditionally considered the norm in global underwriting syndicate culture.
Every banking system at the bottom of the financial pool crosses paths eventually, and in desperate times only a tangled morass of regulations versus sovereign imperatives awaits.
FRTB will force banks to change their operating models, bringing them out of product and trading desk silos. Bank trading culture and the trading desk concept may need to evolve to accommodate a wider picture of risk taking.
Asset managers resist bank-like capital and liquidity regulations being contemplated by regulators. But new requirements appear unavoidable given recent regulatory trends.
The Fundamental Review of the Trading Book was supposed to redefine how banks collectively manage risks. Yet, risk can still be a ‘ghost in the machine’.