JPMorgan and other banks tinker with risk models

In 2011, senior executives at JPMorgan Chase told one of the bank’s trading and hedging groups to scale back its riskier positions as new regulations would make these bets much more expensive to maintain.

The group, called the Chief Investment Office (CIO), was asked to cut risk-weighted assets, a key measurement that regulators use when assessing a bank’s stability and how much capital it needs to hold, according to a US Senate subcommittee report released last week.

via Business feed http://www.scmp.com/business/banking-finance/article/1194421/jpmorgan-and-other-banks-tinker-risk-models