Internal affairs
What separated the small group of winners from the larger group of losers in the subprime crisis was the ability to apply the brakes at the right time. Too often risk managers have been relegated to secondary status and their advice has gone unheeded. Going forward, says Accenture's Chris Thompson, banks need to take a fresh look at their cultures and address their operating model, as well as the roles and responsibilities of both the business lines and risk control
Nearly a year into the turmoil swirling around the financial and credit markets, the numbers have become all too familiar. To date, bank losses stemming from subprime mortgages are estimated at $400 billion with more fallout expected. The International Monetary Fund estimates wider credit-related losses could approach one trillion dollars.
Soaring delinquencies in subprime mortgages were the primary trigger, with the losses mounting and spreading when liquidity dried up. The US housing market
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Economics
Webinar – Nowcasting the US economy
Join CME Group Chief Economist, Blu Putnam, as he shares insights using alternative data and nowcasting to monitor developments in the US economy.
Fed Funds Futures in a Post-ZIRP World
As the FOMC returns to more active management of its key target rate, Federal Funds futures have experienced dramatic growth.
Challenging economic pessimism: an optimistic note
A contrarian, upbeat view of the long-term economic outlook
Economists, like hedge fund traders, need open minds
Economists, risk managers and traders must learn the lessons of crisis, says Kaminski
Fed wrong not to start QE tapering, says UBS economist
The surprise decision by the Federal Reserve last month not to scale back its quantitative easing programme will create more volatility, says economist
IMF's Blanchard warns Europe could drag world economy down
IMF chief economist says ‘three-speed’ global economy could be dangerous
Most read
- Top 10 operational risks for 2024
- Top 10 op risks: third parties stoke cyber risk
- Japanese megabanks shun internal models as FRTB bites