Risk management

The collapse of Archegos Capital Management revealed vulnerabilities at the banks supervised by the Federal Reserve, the U.S. central bank said in a report released Wednesday.

The problems were revealed during recent examinations conducted by the Federal Reserve Bank of New York on the Chinese bank’s U.S. operations.

The Minneapolis company is planning a dramatic reduction in greenhouse gas emissions from its operations and the activities it finances, matching a commitment made by many of the nation’s largest financial institutions.

The establishment of a climate risk division at the New York State Department of Financial Services is the latest in a series of moves by state and federal banking agencies aimed at requiring regulated companies to reckon with the impacts of global warming.

Federal Reserve Gov. Lael Brainard said she expects scenario analysis exercises will accompany supervisory guidance to ensure that large banks are monitoring and managing climate-related risks.

Risk managers are generally not seen as innovators, but Houston's team is playing a critical role in supporting the development of groundbreaking new products aimed at improving customers’ financial health.

The dispute turns on the “discharge for value” defense, established by a 1991 New York court ruling that creditors can keep money sent to them in error if they didn’t realize the payment was a mistake.

The company will return to selling pieces of its credit exposure to private investors during the last three months of the year, but is still evaluating its strategy for 2022.

Citigroup said it will improve the structure of its commodities-trading business as part of its efforts to satisfy a pair of consent orders it received from regulators last year.

The European Central Bank will look at the trading operations of major lenders as part of climate stress tests next year, after judging that an assessment of loan books alone won’t give enough insight into the fallout they face from global warming.