As part of the stress testing routine, each bank is supposed to do its own simulation of how it would respond to the scenarios specified by the Fed, using its own internal model. And—surprise, surprise!—the banks virtually uniformly predict that they will do better than the Fed.
By James Kwak Not surprisingly, there is a great deal of interesting research being done in the area of financial institutions, systemic risk, and regulatory reform. Last week I had the pleasure of attending a workshop for junior law professors … Continue reading →
What are the odds that JPMorgan would lose no more than $50 billion on assets of $4 trillion, much of which is complex derivatives, in…
A group of U.S. bankers has told top Federal Reserve officials that regulators’ focus on restraining bankers’ pay is creating “unnecessary tension.” At a meeting…
BloombergFed Said to Criticize Banks on Risk Models in Stress TestBloombergThe Federal Reserve criticized how some of the 19 largest US banks calculated potential losses and planned dividends in this year's stress tests, people with knowledge of th…
Jun 14, 2011
AsiaTimes
Bank folks can’t count
By Chan Akya
With a dull inevitability that portends the sheer indifference of the rest of the world, the sovereign debt crisis in Europe ripped out another leaf from the Keynesian book. Breathtaking …
SPECIAL EXPANDED PREVIEW and free Radio Free Wall Street podcast. The Fed completed the first full week of its pumping campaign under QE2 this week…
“most recent audit shows that under the toughest stress tests, the FHA’s reserves remain above the point at which taxpayers would have to foot the bill.”