The regulators in U.S. have warned lenders to protect their risk-management staff and systems from any planned cost cuts, Financial Times reports. A break in trading activity, falling asset prices and other factors has led to reduced profits this year, which has forced executives to make difficult choices on how deeply they cut expenses.
Officials at the Federal Reserve Bank of New York are reviewing if banks are sacrificing the progress it has made in boosting internal controls in the wake of a financial crisis that exposed many banks’ weaknesses in managing risk. They are assessing whether banks are reducing their infrastructure builds, as well as staffing.
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