The New Era of Risk Management – Government Intervention
Gordon Burnes 270004HVEW firstname.lastname@example.org | | 0 Comments | 168 Visits
Widely reported today was Bank of America’s replacing their Chief Risk Officer, Amy Woods Brinkley, apparently at the behest of the government, which is eager to improve the risk management capability at the bank. Also, perhaps coincidently (or maybe not), the Wall Street Journal broke a story here about an internal struggle between the FDIC on one side and the OCC and Fed on the other. Apparently, the FDIC and Sheila Bair is pressing the government to change the internal rating they use to gauge the health of financial institutions. Such a rating change would allow the government to apply more pressure on the institution to change key managers in the business. Maybe Brinkley’s replacement is a result of this dynamic. What’s clear is that the risk management function will be in the cross-hairs of government regulators going forward.