Fed’s risk proposal puts banks on the defensive

US Federal Reserve building
Banks say the Fed’s proposal is overly broad

Banks are resisting an effort by the US Federal Reserve to hold individual business units accountable for risk management.

Proposed supervisory guidance issued by the Fed in January assigns responsibility for risk governance and controls to business heads, independent risk managers and senior management – a departure from existing guidance, which focuses almost exclusively on the role of boards and senior managers.

“The Fed has made a very important change” with the proposed guidance, said

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