Daily News: August 26, 2014

Regulators Warn Banks on Ability to Identify Risks

Reuters reported, citing sources familiar with the matter, U.S. regulators are sending some of the largest banks verbal warnings that enforcement actions will be taken against them if they don’t improve on their ability to identify risks.

Reuters noted that the banks that received the warnings are among the largest in the world, but the sources declined to name individual firms because the enforcement actions are not public, Reuters said.

According to Reuters, the banks are responding to the concern by hiring people with experience in data governance and analytics. And the need has been elevated to a safety-and-soundness concern that could eventually lead to restrictions on bonuses, dividends and share repurchases, Reuters said.

To view the full Reuters report, click here.