Buy-side firms say collateral crunch is real
Buy-side representatives said at an industry conference that despite the opinion of a Bank of England official, rules pushing over-the-counter derivatives through central counterparties will create a squeeze on high-quality liquid collateral. An industry report projects a need for $15.7 trillion to $29.9 trillion in initial margin. Risk.net (subscription required)
Credit-risk management becomes increasingly important
Suspect credit agency ratings and the likelihood of a sovereign-debt default in the eurozone have elevated the importance of credit-risk management. "People assumed that certain organizations that got into trouble would never get into trouble. ... The process of credit-risk management has become far more important, rigorous and demanding," Royal London Asset Management Chief Investment Officer Robert Talbut said. Consequently, insurers and asset managers can no longer rely solely on a quantitative approach. Risk.net (subscription required)
Federal Reserve survey finds increased loan demand
Demand for commercial real estate loans, residential mortgages and auto loans are up even as lending standards remain mostly unchanged, according to a loan officer survey by the Federal Reserve. The report covered 68 domestic banks and 23 U.S. branches of foreign institutions. It also noted that, although net demand for residential mortgage loans was up, ?the fractions of banks that reported an increase in demand for both prime and nontraditional residential mortgage loans declined from their levels" in July. DSNews.com
|Regulatory and Accounting Issues
Fed gives banks second chance on stress tests
The Federal Reserve announced it will give banks a second chance when it comes to capital stress tests. The 19 largest institutions will get a preliminary result. They can then take measures, such as altering stock-buyback or dividend policies, to put themselves in a position to pass. The Fed will still publish the initial capital proposal results. Bloomberg
New Speakers Added -- Walk-Ins are Welcome -- IACPM Annual Fall Conference, Nov. 15 to 16 The Roosevelt Hotel, East 45th Street and Madison Avenue, New York
Leading Practitioners come together, topical keynote presentations, three concurrent streams, networking opportunities, cocktail receptions, gala dinner and much more.
For more information our website at www.iacpm.org.
- Eugene Ludwig, Founder and CEO, Promontory, former US Comptroller of the Currency
- Toos Daruvala, Director, McKinsey & Company
- Paul Huck, Director, Wholesale Credit Risk Center, Federal Reserve Bank of Chicago
- Lisa Ryu, Assistant Director, Stress Testing, Board of Governors of the Federal Reserve System
- Simon Adamson, Senior Analyst European Banks, CreditSights
- Hank Calenti, Head of Bank Credit Research, Societe Generale
- Til Schuermann, Partner, Financial Services Risk Management, Oliver Wyman
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