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Since zombie managers areunable to raise new capital, their incentivesmay shiftfrommaintaining good relationswith their investors to
maximizing their own revenue using the assets that they have.
Being a zombie manager in and of itself is of coursenot unlawfulandmost zombie managers will continue to act in the best interests of their investors.
However, given theincentives to favor their own interests, we believe thatthere will be someproblematic conductand possible violations of the law.
Read more atNumber 7 of our list.
Michel Barnier,the European Commissioner for Internal Market andServices, said thatthe EU and U.S. should implement the Basel measuresin parallel, starting in the
first weeks of 2014.
Mr Stefan Ingves,Governor of the Sveriges Riksbank and Chairman of the Basel Committee on Banking Supervision, also said that:
1.There is amaterial variation in risk weightsfor trading assets acrossbanks (after adjusting for accounting differences and for differences inthe riskiness of different bank portfolios)
2.Certainmodelling choices seem to be major drivers of the variationinrisk weights
3.Thequality of existing public disclosure is generally insufficienttoallow users to determine how much of the variation in reported riskweights is a reflection of underlying risk taking, and how much stemsfrom other factors (eg modeling choices, supervisory discretions).
Read more at Number 1 below.
Welcome to the Top 10 list.