Insights & News
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.
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.
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.
Recent Insights
Wells, Cross Selling, Incentives, et. al.
t week’s news about Wells Fargo’s retail sales tactics provides excellent evidence that all of the required ethics and UDAAP (Unfair, Deceptive, or Abusive Acts or Practices) training to which bankers are subjected is no match for poorly-…
Read MoreCCAR 2016 BHC Loss Rate Graphs
slideshow below consists of 16 graphs: eight for the SR 15-18 firms and a matching eight for the SR 15-19 firms. Each graph presents the Fed’s and the firm’s forecasted average loss rate for each portfolio. To stop the show–to remai…
Read MoreWhat Are the Differences between SR 15-18 and SR 15-19?
an style=”font-size: 14pt;”>March 16, 2023 Update: We have a revised version: SR 15-18 vs SR 15-19 vs HCR – Spero Risk Associates, which describes the current application of the guidance by the four tiers, i.e., I, II, III, and IV. We pla…
Read MorePredictions, Forecasts and the Value of Scenario Analysis
href=”https://sperorisk.com/files/2016/07/ScenarioAnalysisColorGraphbg.png”>According to the The Wall Street Journal, “In Uncertain Times, CEOs Lose Faith in Forecasts” and “CEOs Put Less Stock in Predictions,”…
Read MoreThe High Cost of Stress Test Consulting
The Wall Street Journal reported today that banks spent about $29 billion on consultants last year, and that much of the total was spent on stress tests in the U.S. and abroad. We're not sure whether either the reported total or the portion spent on …
Read MoreBrexit, SR-12-7 and SR-11-7
href=”https://sperorisk.com/files/2016/06/brexit.png”>Now that’s a sexy title… but only to a small audience interested in scenario analysis (stress testing) and model risk.1 During the past week, many analysts have written and…
Read More2016 CCAR/DFAST Results in Excel
ate: here are 2017 – 2019 Federal Reserve and Company Run CCAR Results. The Federal Reserve published the initial 2016 CCAR/DFAST results on June 23, primarily the DFAST portion. On June 29, it published additional CCAR results. For your conven…
Read MoreModel Risk Management: The Canadian Edition Presentation
href=”https://sperorisk.com/files/2016/03/Toronto.jpg”>Our CEO, Andy Spero, recently presented at GFMI’s 2016 Model Risk Management: The Canadian Edition. The conference was held in Toronto, Canada, on March 7th and 8th. Andy was on…
Read MoreSpero Risk Associates
come to SperoRisk.com, the web site for Spero Risk Associates, llc, a boutique consulting firm specializing in risk management and finance. Founded in early 2016, by colleagues and former risk management executives, Spero Risk Associates brings exten…
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