Featured Insights
With the uncertainty and possible economic harm surrounding the recently-announced tariffs—whether they stay, disappear, reappear, or mutate—bankers face the challenge of integrating effects into CECL and stress test estimates.
It’s been fifteen years since the last long and deep downturn. Alas, periods of calm are not proof of resilience against harm, and in fact, they may obscure risks that may define the next downturn.
Mayer Brown regulatory partner, Matt Bisanz, and CEO Andy Spero talk about trends and best practices for managing risk – and advice to those just starting out.
A common belief is that broader and deeper bank regulations decrease earnings and share value.
Would SVB’s, SBNY’s, and FRCB’s shareholders agree?
Nine initial impressions of the Fed’s report on SVB including why we anticipate more supervision and attempts to reverse the loosening of scrutiny in 2017 – 2020.
Climate Change, Extreme Weather and Loan Losses. We analyze differences in default rates, LGDs, and loss rates for mortgages in four recent and costly storms.
Since Silicon Valley Bank’s demise, many have been yapping about the importance of capital and capital ratios, but it’s never about capital. It’s always about liquidity!
Andy Spero explains what he concluded from the Fed’s discount window seemingly turning SVB away, and his thoughts on why the FDIC rushed to close SVB down.
We summarize the guidance, analyze the recent revisions, and outline the differences in the tailoring framework for CCAR Supervisory Expectations.
About Us
Our mission is to create flexible, custom solutions to your vexing problems, with growth and sustainability in mind, while building your institutional knowledge.
We operate under the motto “Thought before calculation.” Through guidance from our industry leading experts, our approach avoids aimless (and senseless), resource-intensive datamining. Our solutions are clean, controlled, reproducible, and explainable, and we work with the words of Leonardo da Vinci in mind – “Simplicity is the ultimate sophistication.” Our mission is to create flexible, custom solutions to your vexing problems, with growth and sustainability in mind, while building your institutional knowledge.
Our Advantage
Technical & Practical. We emphasize actionable information – whether working with developmental data warehouses, data governance issues, model building and evaluation, valuation, or validation. We’ve done it all and did it well.
Transparency & Discipline. We describe, document, and justify solutions with objective evidence, including the constraints that preclude alternative approaches.
We pride ourselves on innovative, sustainable, long-term solutions that your team can control, replicate and reuse as needs arise and change.
Honest, Insightful, and Transparent. We add value as complements, not substitutes, and work as closely as you want, including embedding client workers in our teams.
Recent Projects
Risk Rating Model Implementation
Assisted loan portfolio modeling dept in risk rating model implementation in SAS.
CECL (End-to-End)
- Mapped merger history and created a combined developmental data warehouse including an automated quarterly ETL process for CECL input data and an ongoing monitoring package.
- Developed, implemented, and tested CECL model suites in SAS ECL. Established a parallel process to verify model forecasts in R.
Ongoing Monitoring & Scenario Analysis
- Backtested model results to fulfill audit findings.
- Developed ongoing monitoring package and parallel SAS forecasting process for legacy models implemented in Primatics.
- Wrote ongoing monitoring policies and procedures.
Sageworks CECL ETL and Execution
Performed monthly Sageworks ETL and execution.