Brain drain at OCC raises concerns about US model supervision
Quant team cull will reduce capacity to validate bank models, but that could be part of the plan
US regulators’ ability to supervise bank models is being called into question, as quant teams at the Office of the Comptroller of the Currency (OCC) face heavy staff cuts.
According to six sources familiar with the situation, the agency’s in-house think tank – the Economics and Risk Analysis Division (RAD), which includes most of its quantitative modelling experts – looks set to be among the hardest hit in an ongoing workforce reduction.
The RAD, which employs around 60 to 80 financial economists
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