This week's risk management news includes Morgan Stanley and Goldman’s increased credit risk, possible dents to Visa and MasterCard usage, and the head of Bank Melli’s $2.6 billion embezzlement.
October 05, 2011 | The Asian Banker Editor
Morgan Stanley, Goldman credit risk soars to highest since 2008
The cost to protect the debt of Morgan Stanley and Goldman Sachs Group surged to the highest levels since the weeks after Lehman Brothers Holdings's bankruptcy as concern intensified that Europe's debt crisis will infect the global banking system.
Banks' debit-use fees a small risk To Visa, MasterCard
Visa and MasterCard could see a minimal revenue dent from new fees that banks are charging customers to use debit cards. The transaction processors' revenue could decline 0.2% collectively if such fees curb consumers' use of debit cards.
Iran Bank chief quits over fraud
Managing director of Bank Melli, Iran’s largest state-owned bank, Mahmoud-Reza Khavari, has quit over a $2.6 billion embezzlement, the largest case of bank fraud in the country’s history. Seven state-owned and private banks were linked to the case, which reportedly involved the forging of letters of credit from Bank Saderat to secure loans that were then used to purchase state-owned companies.
Re-disseminated by The Asian Banker
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Risk And Regulation Working GroupKeywords:Morgan Stanley, Visa, MasterCard, Iran Bank
