The Scientific Approach to Mitigating Operational Risk


Devising a risk mitigation plan Â-- and the training and oversight necessary to implement it Â-- requires lenders and servicers to conduct a scientific investigation into the policies, procedures and controls they already have in place.


Banks Have 'Boiled Frog Syndrome' Regarding Risk Management


Institutions become comfortable with the nominal profit increases from higher risk and ignore the warning signs. It is hard to recognize a problem when you are paid not to see it.


What 2014's CCAR Results Mean for Banks in 2015


Smaller bank holding companies are faced with a potentially significant problem if their risk controls are judged insufficient for the current regulatory environment.


Memo to Regulators: Restricting CLOs Could Stifle Economy


Creating a one-size-fits-all approach to collateralized loan obligations does not harm Wall Street, it harms American businesses.


JPMorgan, Condoms and the Problem of Reputational Risk


JPMorgan Chase's recent refusal to process payments for a startup condom company highlights why government crackdowns that treat banks as moral police (ahem, Operation Choke Point) should worry everybody.


Time to Rethink Mandatory Retirement for Bank Directors


If banks that performed well for their shareholders from 2002 to 2012 have so many older directors, why would some banks force directors to retire once they hit 70 or 72 years of age?


Beware Regulatory Concentration Risk


Risk is like water, seeking the path of least resistance. If the path is narrowed, risk does not necessarily evaporate, as regulators wish, but often focuses as a more concentrated force. Accepting this alternative concept of risk has far-reaching policy consequences.


The Perils of Fixed-Rate Lending


The highway to higher bank profits is littered with dead banks and S&Ls. DonÂ't be surprised to discover a few more casualties along the highway if and when long-term fixed-rate lending really takes off.


Why Malpractice Should Be a Concern for Bankers


In most states, the good-faith lending decisions made by bank officers and directors are protected from liability, even if the loans sour and the bank fails. But bankers and directors beware: you can still be sued for simple negligence.


Beware of Activist Investors


Institutions with solid, but underperforming assets and lagging stock price valuation multiples are vulnerable to activist investors. Address problems before they are attracted to your bank.