risk management

10 Stories

JPMorgan Ignored Scads of Red Flags

Jamie Dimon on hot seat as shareholders meet today

(Newser) - There is likely some hell yet to be paid at JPMorgan after the bank lost $2 billion on bets that were supposed to be hedges. The firm's shareholders are meeting today, and many want to knock CEO Jamie Dimon out of the chairman post, Reuters reports—including the California... More »

Corzine Blew Off Risk Officer

CRO Michael Roseman went to board of directors with fears

(Newser) - Jon Corzine can’t say that nobody warned him that his bets on European debt might ruin MF Global, because his chief risk officer did just that—repeatedly. Michael Roseman told Corzine that the company didn’t have the cash to handle the risk it was taking on, and that... More »

Being a Good Gambler Is Genetic: Study

'Warrior Genes' makes you make better, riskier decisions

(Newser) - If you’re good at poker, you may have your DNA to thank for it. A new study published today found that people with MAOA-L, the so-called “warrior gene,” were both more likely to take risks, and more likely to be able to identify advantageous gambles. Past studies... More »

Your Credit Card Is Spying on You

Visa and other companies judge you based on what you buy

(Newser) - Visa knows if you’re going to get a divorce. It knows that you just moved and, most importantly, it knows if you’re going to miss a payment—maybe before you do. Credit card companies have developed eerily accurate models for predicting consumer behavior based on the things they... More »

CIT Bust Would Cost US $2.3B, Earn Goldman $1B

Taxpayers shares could go up in smoke while Goldman gains

(Newser) - Troubled commercial lender CIT, circling the drain for more than a year, would cost taxpayers $2.3 billion in shares purchased by the Treasury Department if it files for Chapter 11 soon—but Goldman Sachs, which gave the lender emergency funding, stands to collect a $1 billion windfall if it... More »

Unlike, Say, Iran's Nukes, Flu Is Worth Real Worrying

Pandemic possible, and closer to home

(Newser) - In the modern world, it’s hard to know what to be scared of, writes Eugene Robinson in the Washington Post. We watch the flashy threats—Russia, Pakistan, terrorists—and end up worrying about the wrong disaster. “But we also should think about other threats that could potentially cause... More »

Economic Crisis Wallops Business Grads

Current students jockey for fewer jobs; programs see surge in applications

(Newser) - With the financial world in free-fall, recent business-school graduates are finding fewer jobs and fierce competition for the ones that remain, Business Week reports. “A lot of the factors affecting my future employment are out of my hands,” said one MBA student preparing to hunt for a job... More »

Geek Squad's Models Missed Risks—and AIG Paid Price

Insurance giant's dependence on computer predictions made situation far worse

(Newser) - “All I can say is beware of geeks bearing formulas,” Warren Buffett once said. AIG didn’t heed his advice. The huge insurer bet tens of billions on credit-default swaps, guided by imperfect risk-assessment models created by a moonlighting finance professor, the Wall Street Journal reports. AIG knew... More »

Living on the Edge in Connecticut

Will hedge-fund legend Victor Niederhoffer go broke again?

(Newser) - Victor Niederhoffer is many things: a champion squash player, a family man (six children from two wives and a mistress), a blogger, and a math prodigy.  But mostly he is a trader. He amassed huge wealth working with George Soros in the 1980s, losing it all in 1997. He... More »

Credit Crisis: Damaging or Deserved?

Economist calls risk adjustment necessary, if hazardous

(Newser) - The Economist takes the long view on the turmoil that has engulfed the financial markets, noting that investors have long wondered whether the "the securitisation of just about every form of debt into a tradable asset" would, in the end, spread risk efficiently or lead to cataclysmic failure. The... More »

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