Risk officers at large investment banks are getting their 15 minutes of fame. They must be savouring their leverage over powerful bankers and traders,an investment bank needs a risk management system that investors, investment banks and rating agencies, have no reason to question.how long traders are allowed to sit on loss-making positions before their bosses make them give them up.What assumptions go into the Armageddon stress tests the investment banks run and how relevant were they this summer? How do executives decide what their risk appetite is investment banks,How much probing do they do of apparently successful strategies? Banks would presumably die before they divulged such sensitive stuff. But they cannot complain if the market needs reconvincing investment banks, every quarter, that trading bets have been taken judiciously investment banks.
Tags: Bank, exec, Investment Bank, Investment Banks, nvestment Banks
Investment Banks October 20th, 2007
