De-risking

Some bankers spread the religion of this year's feel-good World Economic Forum, but others were more circumspect. The list of potential threats remains lengthy — including trade wars and the bursting of the bitcoin bubble — and all pose risks to banks and the economy.

The banks fell in global regulators’ ranking of the institutions that pose the biggest threats to the financial system, and authorities recommended they face lower capital surcharges.

Payment processors and banks are being called on to cut off funds to white supremacist groups, but there are practical and legal limits to what firms can do.

A judge has approved the inclusion of new payday lenders in a case seeking relief from the effects of Operation Choke Point, and denied defendants' motion for summary judgment against Advance America.

Banks tend to blame regulatory costs for de-risking without being honest about the need to improve anti-money-laundering procedures.