Re:SVB lobbied the government to relax some Dodd-Frank provi...
by guerby on Sunday March 12, 2023 @10:17AM
(#35120320)
If you're subjected to a regulation with periodic reporting, you're just not going to play and look bad on a report if you can avoid it. And you know parameters will be refreshed
SVB did lobby so it could play the game it wanted, it looks like it was a basic game from what I can read in the media.
In Europe the current test is page 5, 2023 10 year interest rate at 4.5% in the stress test, and you see that it's a moving target (nice historical graph):
Incentives matter ... While regulation will not prevent failure, it helps. We already know what happens after deregulation of risk management in banking.
Disclaimer: worked for a decade in finance, including on software used for those report computations...
SVB did lobby so it could play the game it wanted, it looks like it was a basic game from what I can read in the media.
In Europe the current test is page 5, 2023 10 year interest rate at 4.5% in the stress test, and you see that it's a moving target (nice historical graph):
https://www.eba.europa.eu/sites/default/documents/files/docu...
Incentives matter ... While regulation will not prevent failure, it helps. We already know what happens after deregulation of risk management in banking.
Disclaimer: worked for a decade in finance, including on software used for those report computations...