http://lnkd.in/dUUjhCP Looking beyond the probe into the opaque deal allocation process, this story throws the spotlight on Funding Risk. Banks should be asking themselves what line of sight do we have over how our Traders fund? Do we have a limit structure around our book? Do our Traders fund to assets or are they free to take proprietary risk through funding trades? Are our Risk Management stress tests up to date for the change in underlying liquidity in the bond market?
http://lnkd.in/dTGBQqF “This almost certainly had to do with the precedent that would have been set had Hartland won and established in law that a claimant could have a derivative contract with the bank ripped up in the event it could prove the rate on which the contract was based had been tampered with by the institution that had sold it the product.” That such a statement has to be made shows how far the industry still has to go on “Culture”.
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http://lnkd.in/dur9WFk Skadi Limited provides Expert Witness Services. Our Consultants are all ex-Front Office Staff drawn from Investment Banks, Inter Dealer Brokers and Investment Managers, with broad subject matter expertise. Visit us at www.skadilimited.com or contact Nicolas Corry for further information.