Mayra Rodríguez Valladares has been quoted in numerous publications in the US, Europe, and Latin America.

“Saudi Aramco would hurt its IPO by not listing on the NYSE,” Mayra Rodriguez Valladares, managing principal of MRV Associates, told Anadolu Agency.
“First of all, let’s see if Aramco will really go with this threat of not listing in the U.S.,” she said.
“It’s quite a privilege for many companies to list in the U.S. It’s a market that is very large, very liquid and very well regulated.”

“Tarullo is one of the greatest minds that the U.S. has ever seen on all things banking,” said Mayra Rodriguez Valladares, the managing principle of financial regulatory consulting firm MRV Associates, adding that Tarullo’s departure was “terrible news.”

“Saudi Aramco would hurt its IPO by not listing on the NYSE,” Mayra Rodriguez Valladares, managing principal of MRV Associates, told Anadolu Agency.

“First of all, let’s see if Aramco will really go with this threat of not listing in the U.S.,” she said.

“Turkey can benefit from a weaker currency because it would help its exports,” Mayra Rodriguez Valladares, the managing principal of New York-based financial consulting and research firm MRV Associates, said.

‘The sentencing of the banks “really signals to individuals and banks that there are penalties and consequences for manipulating markets,” said Mayra Rodriguez Valladares, a former foreign-exchange analyst for the Federal Reserve Bank of New York who conducts training for banks and financial regulators as managing principal of MRV Associates in New York.’

“There’s so much uncertainty on what his policies are,” said Mayra Rodriguez Valladares, managing principal of regulatory consultancy MRV Associates. “In the very same speech, he is for a new Glass-Steagall and then he also says ‘oh but I want to do away with regulations’.”

But if rules in Europe and the U.S. vary too much, this will create more work for those policing banking activities. Such a situation would mean “there will be so much more pressure on the regulators to supervise the banks and examine them more carefully,” said Mayra Rodriguez Valladares, a New York-based financial-regulation consultant.

More work for supervisors raises the risks of errors, barring an increase in resources for those watching the banks, she cautioned: “And then you’re surprised when they miss something.”

But figuring out how “interconnected” a bank is to the U.K. is “such an incredible, gargantuan task,” said Mayra Rodríguez Valladares, managing principal of MRV Associates LLC, a financial-regulation consultancy. “It could be lending to companies…derivatives, interbank lending,” she said.

The focus on those risks shows a shortcoming in the way supervisors think about regulation that is beginning to change, said Mayra Rodriguez Valladares, the principal at consulting firm MRV Associates.

The incentive structure and account opening practices at Wells Fargo fall under the broad category of operational risk, which has been “the ugly stepchild” of bank regulation, she said.

“Embedded in decades of bank regulations and then bank exam processes is a big bias toward credit risk, not operational risk,” Rodriguez said.

There are still questions about market rules that could pose bigger issues, and banks have already discussed moving staff to cities in EU member states, like Dublin, Ireland, and Frankfurt, Germany.

And that could raise operational issues at banks that regulators will keep their eyes on, said Mayra Rodriguez Valladares, the principal at consulting firm MRV Associates.

“This is going to be a long, drawn-out battle,” she said.

“The bank no longer looks like what it did when it did its stress test,” said Mayra Rodriguez Valladares, managing principal for bank consulting firm MRV Associates. “If you try to use the results from stress tests you did back in April, how valid are they now that the British pound is down nearly 10%?”

But figuring out how “interconnected” a bank is to the U.K. is “such an incredible, gargantuan task,” said Mayra Rodríguez Valladares, managing principal of MRV Associates LLC, a financial-regulation consultancy. “It could be lending to companies…derivatives, interbank lending,” she said.
Banks’ ability to keep track of risk is at a point, she said, where if a regulator were to call major banks right now and ask them to measure their counterparty risk, they “would struggle to achieve that quickly and accurately, especially in a period of economic or market stress.”

“Brexit Would Mean ‘Gargantuan Task’ for ECB on Bank Safety”, Wall Street Journal Pro Financial Regulation

June 20, 2016

But the coming legislation is too focused on the United States to be a reasonable option for global banks, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

Banks operating in a global environment have to contend with capital regulations in all of the countries in which they operate. Most of those countries, including the U.K., Canada, China, Japan, Russia and members of the European Union, are members of the 27-country Basel Committee on Banking Supervision.

Those countries have either put in place the requirements demanded by the 2010 Basel agreement or are in the process of doing so.

Should the U.S. veer off that standard, banks will be faced with the huge costs and complications of maintaining multiple compliance systems, Rodriguez said.

“That actually causes a real technological and systems nightmare for banks,” she said.

Banks disclose a variety of financial information that is supposed to help regulators assess the health and various risks associated with the nation’s banking system. But this information can oftentimes be incomplete or misleading, Mayra Rodriguez Valladares, the managing principal at MRV Associates, said. The firm’s clients include the Security and Exchange Commission, the Federal Reserve Bank of New York and the FDIC.

“That we have to tell grown adults that they should have ethics in foreign exchange markets is incredible,” Mayra Rodriguez Valladares, a former New York Fed foreign-exchange analyst who conducts training for banks and financial regulators as managing principal of MRV Associates in New York, said by email. “What next? Should we remind them to wash their hands after going to the restroom?”

But that focus means a change in the way banks look at their operations, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

Traditionally, banks have taken out short-term financing to fund their operations while lending out money on a longer-term horizon, she said.

And then “we go ahead and buy the bonds and stocks of these banks, which are very opaque and have this bizarre model of borrowing short and lending long,” she said. “And that works until it doesn’t.”

The NSFR “is fundamentally a rule to change the bank structurally,” Rodriguez Valladares added.

“I do not understand why the [Financial Stability Oversight] council does not share the qualitative and quantitative metrics it uses for its analyses,” said Mayra Rodriguez Valladares, managing principal at MRV Associates, over a phone interview with Thomson Reuters GRC.

Mayra Rodriguez Valladares, an independent New York-based regulatory consultant, supports Basel’s latest intrusive push to micro-manage banks’ liability management, citing the fact that low bank equity prices, in part, reflect a loss of investor confidence in apparently opaque capital management. “While I love the ethos of the Basel III, risk sensitivity has become out of control because of the variability and opaqueness in models,” she says. She adds: “The challenge still remains that banks get to use too many opaque models which involve hundreds of personnel such as modellers, risk managers, validators, compliance officers and auditors. Since all of them have different motives and skills, there is a lot of scope for errors. “Also, big banks continue to struggle with having complete, accurate data sets to measure their risks reliably and consistently. Hence, there is a lot of scope for subjectivity. Worst of all, banks are not required to be granular in their disclosures, so the market does not have the information to discipline.”

“Given the enormous damage caused and still felt by the financial crisis, it is understandable that people focus their anger on big banks,” said Mayra Rodriguez Valladares, managing principal of consulting firm MRV Associates. “Unfortunately, neither politicians nor those central bankers and regulators who want to break up big banks have come up with a credible plan on how to do this. None have proven the economic benefits to breaking up a big bank.”

Top Regulators Cast Doubt on Bank Break-Ups, Bloomberg Brief

April 22, 2016

“The new Basel guidelines on interest rate risk management in the banking book could not have come at a better time,” said Mayra Rodriguez Valladares, a regulatory consultant. “It is imperative that banks improve and disclose more about how they measure interest rate risk.”

Banks score victory in fightback on capital, Financial Times

April 21, 2016

This year, the Fed has made it very clear to banks that there will be a focus on data quality.
“‘Where did you get your data? How good is it and how reliable is it?’ My clients are getting a lot more questions about their data practices,” said Mayra Rodriguez Valladares, a managing principal of bank consulting firm MRV Associates.

Oil Flow Causes Stress, Banking Exchange

April 18, 2016

“It is imperative that banks disclose more material details from their living wills to the public. The market can be an incredible force in helping bank regulators to discipline banks.‎ Yet, the market only functions if it has information about banks’ complex structures and transactions, and if it can see how banks would resolve themselves in.an orderly manner without taxpayers bailing them out.”

“If any big US bank were to be weak or outright fail, there could be significant contagion to the UK,” said Mayra Rodriguez Valladares, a derivatives specialist and Managing Principal at consultancy MRV Associates. “The danger is that if a US bank were to fail, UK regulators might want to ring fence a US’ subsidiary in the UK, which could exacerbate the position of the US bank and increase panic in the global banking system.”

Another criticism of the process is that the information provided in the living wills will be dated by the time the regulators release their assessments. The feedback provided by the Fed and the FDIC was from reports submitted in 2015, meaning that both the structures of the banks and market conditions may have changed.
“What are we supposed to do with this information? It’s already old,” said Mayra Rodriguez Valladares, the managing principal of financial consulting firm MRV Associates.

 

Mayra Rodriguez Valladares’ Interview with David Foster, Al Jazeera

“It’s not confidence-building,” Mayra Rodriguez Valladares, a financial consultant, told Al Jazeera. “Although headquartered in the US, this would be a huge challenge for UK, Japan etc if they failed.”

“Interest rate risk management is a critical concern for banks in this rising rate environment,” offers Mayra Rodríguez Valladares, managing principal at MRV Associates LLC, a capital markets and financial regulatory consulting and training firm in New York.

“‘Where did you get your data? How good is it and how reliable is it?’ My clients are getting a lot more questions about their data practices,” said Mayra Rodriguez Valladares, a managing principal of bank consulting firm MRV Associates.

Mayra Rodriguez Valladares, managing principal of MRV Associates, said MetLife has all the hallmarks of a SIFI institution based on its size, complexity, international footprint, involvement in derivatives and management of public funds. That could make future designations more difficult, she said.
“The decision on MetLife is a big disappointment,” Valladares said. “The job of the FSOC to minimize systemic risk, from both banks and nonbanks, in the U.S. has been [made] much harder by today’s ruling.”

‘When a crisis hits, that could present a problem for giant banks with operations in those countries and for those banks’ home-country regulators, said Mayra Rodriguez Valladares, the managing principal of financial consulting firm MRV Associates.

“When those countries don’t have everything in place for the resolution authority, it matters if one of their banks falls apart — but it really matters if one of our banks falls apart,” she said.’

“The U.S. is in a better position to make this adjustment with these rules than the European and U.K. banks,” said Mayra Rodriguez Valladares, managing principal at consulting firm MRV Associates LLC.

“The banks have been benefiting from having this uplift, this assumption in the ratings that they’d get rescued, basically, by the government or back-door support from the Fed,” says Mayra Rodriguez Valladares, managing principal of MRV Associates, a New York-based financial consulting firm specializing in risk management.

“This is a signal from the ratings agencies that they really do believe that these resolution frameworks are in better position than they have been, and that it’s not just talk — that these bailouts wouldn’t happen,” Valladares says.

Latest bank downgrade actually good, Bankrate

December 11, 2015

“‘This is long overdue,” said Mayra Rodriguez Valladares, a former New York Fed employee who conducts training for financial regulators as managing principal of consulting firm MRV Associates. “It’s very, very difficult when you work at the Fed to be the person who really sticks out.”

Second, the LTD numbers may prove to be erroneous. “Just like in the past, banks could game their risk-weighted calculations to come up with lower than adequate levels of requisite LTD,” said Mayra Rodriguez Valladares, managing principal at MRV Associates, over an interview with Thomson Reuters. “Unless the Basel Committee overhauls its approach to risk-weighted calculations, as it intends to, I do not see how this can be addressed properly.”

U.S. regulators advance “super-equivalent” approach in loss-absorbance proposal, Complinet

November 6, 2015

“I spend a lot of time with regulators, and I can tell you that [their concerns are] interest rate, interest rate, interest rate and some more interest rate,” said Mayra Rodriguez Valladares, managing principal at MRV Associates. “They are very concerned about whether banks can really cope with those changes … it’s definitely a key thing.”

Specter of Interest Rate Risk Haunts Regulators, Banks, American Banker

November 6, 2015

For now, though, outsiders should take the banks’ reported ratios with a pinch of salt, said Mayra Rodriguez Valladares of MRV Associates, a former official at the Federal Reserve Bank of New York.
“If they’re moving assets around to look better it is a big problem for us, as we don’t get to see the day-to-day information,” she said.
“If something adverse happens, we could have been lulled into a false sense of security that [the banks] are sufficiently capitalised.”

The FFIEC data don’t include the exposure to China that banks have accumulated indirectly through their clients, said Mayra Rodriguez Valladares, managing principal at New York-based financial consultant MRV Associates LLC.

Banks “are lending to tons of different companies globally that are all sensitive to what’s happening in China,” she said. An Australian commodity producer with customers in China, for example, would give its bank additional, indirect exposure to China and yuan weakness.

The numbers “understate how badly a bank can be hit” by the Chinese slowdown, she added.

Ms. Rodriguez Valladares says the banks’ ability to cope with a slowing China has emerged in recent weeks as a frequent topic in her discussions with U.S. banking regulators.

Banks in Hong Kong Post Drop in Overseas Loans, Wall Street Journal

October 6, 2015

As financial institutions continue to struggle with compliance to regulations, it questions whether banks and corporates will ever be able to work together and pursue the same strategy and achieve success. GTNews speaks to Mayra Rodriguez Valladares, managing principal at consultancy MRV Associates about how organizations should implement regulations such as Basel III, BCBS239 and the Dodd Frank Act to ensure a safe future.

Mayra Rodríguez Valladares, a managing principal at MRV Associates, a regulatory consulting firm in New York, said it was hard to tell whether institutions are truly complying with the Volcker rule if the findings of the metrics reporting process are not being disclosed to the public.

“I think the whole requirement to make the banks comply with the Volcker rule is a complete waste of time to the banks and the bank regulators unless the metrics are made public,” said Valladares.

U.S. regulators set to begin examinations of Volcker rule compliance, Thomson Reuters

September 28, 2015

“Derivatives users are even more interconnected than they’ve ever been … the work CPMI-Iosco is doing is extremely important to the whole market,” said Mayra Rodrigues Valladares, managing principal of regulatory consulting firm MRV Associates.

Mayra Rodriguez Valladares, managing principal at MRV Associates in New York, a consultant to both regulators and banks, said she’s concerned that lending has been “moving to the shadows” in the U.S., Europe and China, and that regulators lack authority or have largely ignored the growing threat that might pose.
“Regulators need to write rules to regulate the shadows,” she said. “The focus has been too much on banks. Bear Stearns and AIG were not banks.”

“There is an acknowledged split, but the members have agreed to this proposal,” said Mayra Rodriguez Valladares, managing principal of MRV Associates.
“Now that they have come up with a proposal, it’s very clear that they are serious. Not having banks strictly measure the potential unexpected losses due to interest rate risk is a big deal in an environment where interest rates are at historic lows globally.”

‘Basel Takes on Interest Rate Risk,’ International Financial Review

June 13, 2015

“This is one of the most significant attempts by the Basel Committee to reduce banks’ regulatory arbitrage between the banking and trading books,” said Mayra Rodriguez Valladares, a regulatory consultant. “Until now, banks have had incredible flexibility in booking assets such as bonds in the banking book and avoiding calculating unexpected losses due to interest-rate risk.”

“The one area where firms struggling to find good people is in compliance,” says Mayra Rodriguez Valladares, managing principal of consulting firm MRV Associates. “Banks are really struggling” in compliance hiring.
Compliance pros have a great deal of leverage when banks come calling because they are in very short supply, Rodriguez Valladares said.

“It’s practically impossible for any bank to tell you what they’re spending on CCAR because they probably don’t know either,” said Mayra Rodríguez Valladares of MRV Associates, a consulting firm. “How do you know if the dollar you’re spending to upgrade the system is really for CCAR, or if it’s for the Volcker Rule or to calculate another regulatory ratio?”

“There’s nothing like actually having been a bank examiner and knowing where to go look for the skeletons,” said Mayra Rodriguez Valladares, a former New York Fed employee who is now managing principal at consulting firm MRV Associates.

“The banks are all struggling with the difficulty of getting the metrics. This is incredibly quantitative. It is an intense data exercise. Many of the banks of course know how to measure their risks but they’ve never had to do it at such a granular level,” said Mayra Rodríguez Valladares, a managing principal at MRV Associates, a regulatory consulting and training firm in New York.

Valladares said many big banks were organized in such a complex manner that they were overwhelmed with the process of collecting and reporting metrics.

Although some banks have created internal groups to comply with complex rules like Volcker or the Basel rules, she said they needed to coordinate the groups to avoid duplication.

‘Banks struggle to report trading metrics for Volcker rule as deadline looms’ Compliance Complete, Thomson Reuters

May 6, 2015

Mayra Rodriguez Valladares, an independent New York-based risk-management expert and a supporter of Basel’s new push, says: “It will be very difficult to provide standardization in the banking book but banks need to be more transparent about their interest rate exposures. They publish very little, if at all, about the amount of assets in the banking book that fall under different maturity buckets, the stability of customer deposits by time-horizons, nor do they explain the models they use to manage interest-rate risk. By contrast, exposures in the trading book are now disproportionately more transparent than the banking book.”

However, Mayra Rodriguez Valladares, principal of MRV Associates, a firm that offers bank training on regulatory matters, said she is skeptical of the argument that HQLAs increase systemic risk. She said banks are mainly chasing yield due to the low-rate environment and that if banks pursued riskier investments due to liquidity regulation, the effort would be self-defeating.
“If you’re chasing after high-yield bonds or anything like that, then guess what? It negatively impacts your Tier 1 ratio because your risk-weighted assets go up. It also impacts your capital conservation buffer because that’s also based on risk-weighted assets,” Rodriguez Valladares said.

Mayra Rodriguez Valladares, a regulatory consultant, supports a broader analysis of risks, but said regulators needed to keep a close eye on institutions that were not global but could pose systemic risks on a regional basis due to their concentration in certain parts of the US.

‘Us Struggles Over Severe Bank Risks’, Financial Times

March 19, 2015

Rodriguez Valladares took it a step further, saying the banks’ inability to produce accurate, timely data about their holdings essentially invalidate the quantitative portion.

“When the banks themselves are telling the Basel Committee that they have a problem, I don’t see how people can take these stress tests or capital ratios seriously,” Rodriguez Valladares told SNL. “I’m talking to people who are working at these banks and they’re like, ‘Yeah, you do what you can.’ But they’re far from having reliable data that then means anything when it comes to stress tests or capital ratios.”

‘Stress tests drive more stress’, Banking Exchange

March 13, 2015

Among the issues that banks need to focus on, and that directly impact the quality of stress tests, are basic information technology and data measurement issues that have not received sufficient attention and money, said Mayra Rodriguez Valladares, managing principal of financial consulting firm MRV Associates.

“The banks have tremendous problems with risk data and IT architecture,” she said.

Since those tools that are used to collect the data to undergo the stress tests, the Fed’s teams may not have perfect data to measure a bank’s resiliency, she said.

“Regulators have to play the game with the cards they’re dealt, and right now the cards aren’t very good,” Rodriguez Valladares said.

“Banks have a lot of flexibility in how they create their credit risk inputs and even more as to how they design their market and operational risk models. No one, other than modellers at the specific banks can really tell you if a bank is adequately capitalised,” said Mayra Rodriguez Valladares, a regulatory consultant. “This means that their capital and leverage ratios, along with liquidity, cannot be trusted. These issues are of the utmost importance to make sure that banks are adequately capitalised.”

Too Big to Fix? Like the Stay Puft Marshmallow Man, the world’s largest banks are tough to wrangle, according to financial regulation expert Mayra Rodríguez Valladares. She argues that while it’s too early to know the efficacy of all the regulations aimed at ending “too big to fail,” there’s clearly reason to worry about big banks’ operational risk and the validity of their living wills. The post is the latest in a continuing debate over TBTF on BankThink. Those in need of a refresher can check out an op-ed by Boston University professor of banking law Cornelius Hurley and a response from The Clearing House Association president Paul Saltzman. Separately, Valladaresmakes the case for H.R. 888, a bill that would require banks to accumulate capital equal to the amount of market subsidy they receive.

“There are a lot of different entities out there that can provide the services that banks have typically offered,” Mayra Rodriguez Valladares, a consultant and trainer at MRV Associates, said in an interview in Miami on Jan. 27. “One more scandal, and it will be, yet again, the buy side who are saying ‘we’re tired of getting messed over by the big broker-dealers.’

The Basel Committee’s new disclosure rules will give investors a much better picture of banks’ risks, thereby helping to improve market discipline, writes financial regulation expert Mayra Rodriguez Valladares.

Weekly Wrap: Now Even Churches Are Too Risky to Bank, American Banker

January 30, 2015

“I see a bit of an imbalance among the risk areas in the templates,” said Mayra Rodriguez Valladares, managing principal at MRV Associates, over an interview with Thomson Reuters. “There is a lot more granularity on credit risk than on operational and market risk. This is a good sign, as it probably means that Pillar 1 work on credit risk area is finally nearing completion, and we are likely to see more work in other areas of risks.”

Considering most of the significant changes related to foreign claims on an ultimate-risk basis, it was likely due to guidance issued by the Federal Reserve, said Mayra Rodriguez Valladares, managing principal of MRV Associates, a consultancy for bank regulatory practices.

“[The Federal Reserve hasn’t] been too satisfied with the way that the banks have been doing data collection and reporting, so this is one more push for them to fine-tune that,” Rodriguez Valladares told SNL. “So it doesn’t surprise me that the bank’s numbers have changed because the banks have to be a lot more conservative in how they come up with these numbers.”

“This level of transparency, like the sun, is the best disinfectant,” said Mayra Rodriguez Valladares, a financial-regulation expert. “Requiring information on such fixed templates may seem like micromanagement on the part of the Basel Committee, but without uniformity, banks report what they feel like, which is exactly what has been happening since Pillar 3 became part of the Basel Accord in 2006.”

Basel Committee overhauls banks’ disclosure model, Financial Times

January 28, 2014

Mayra Rodriguez Valladares, a consultant and trainer at MRV Associates, will be late coming home from a foreign-exchange conference at the Trump International Beach Resort in Miami.

“I have been stuck in Sudan and Kazakhstan, so Miami’s pretty good,” she said. “We’re so used to being Type A in finance, but you can’t control everything. You cannot defeat Mother Nature. It’s just a reminder there are things you can do nothing about. I just had to take a step back and say, ‘Is my husband safe? Are my children safe? Yes.’”

Stranded on Wall St. in Blizzard: How Type A Does Plan B Bloomberg Business

January 26, 2015

Goldman has “been more aggressive about pushing, and wanting to do these investments,” said Mayra Rodriguez Valladares, a consultant who works with banks and regulators on compliance with the Dodd-Frank financial law.

“What I’m hearing from the regulators is they are not wanting to be seen as being too soft on Goldman, of all the banks. So I’m not convinced that they are going to get away with it this time,” said Ms. Rodriguez Valladares, who has been an occasional contributor to The New York Times DealBook.

Goldman Sachs Investments Test the Volcker Rule, New York Times

January 21, 2015

“This is where the money is. It’s not the push-out rule. … I’ve always believed the big focus is the Volcker Rule,” said Mayra Rodríguez Valladares, managing principal at MRV Associates. “Do I think the banks are going to be pushing as much as they can to make revisions or at least delaying [the rule more]? Absolutely.”

“The delays are also about the banks being unprepared to implement the rule,” Valladares said. “All of these banks have a diversity of problems. It’s not that all of them have the same exact problem.”

“The question is whether Citi’s systems are good enough, global enough, to capture everything the bank is doing,” said Mayra Rodriguez Valladares, a consultant who helps financial institutions comply with regulations.

‘Stress test’ puts pressure on Citi, Crains

January 18, 2015

“I think MetLife will have a difficult time challenging this designation in court because it is interconnected in a lot of ways to the financial sector and the real economy,” said Mayra Rodriguez Valladares, managing principal of financial consulting firm MRV Associates. “We’re not talking about a small mom-and-pop shop here — if they fall apart, there would be widespread effects. You can’t have it both ways — you can’t be this huge one-stop-shop company and enjoy the benefits of all these synergies but also claim you’re not systemically important.”

MetLife is a complex global financial institution, not merely an insurance company, Valladares said, noting that the company offers retirement plans and savings products, transacts in annuities, sponsors special-purpose vehicles, participates in the derivatives markets and invests in private equity.

“[Global systemically important banks] should be on the lookout for stricter standards for how they calculate capital under the advanced internal ratings-based approach. The Basel Committee for Bank Supervision is likely to reduce the flexibility that large banks have in calculating risk weighted-assets. This will impose additional data and compliance burdens on banks. The Basel committee will also continue to demand transparency from banks into their inputs and models for how they calculate RWAs. In the U.S., I expect that the Volcker Rule compliance date will be extended for large banks and certainly for smaller banks. Expect a full year of large banks trying to weaken the Volcker Rule. Given how poorly they are doing at implementing it, this should be no surprise.”

‘Bold Banking Predictions for 2015,’ American Banker

January 2, 2015

“Ultimately, it’s the shareholders who have to say we are tired of not getting adequate returns,” said Mayra Rodríguez Valladares,a managing principal at the consultancy MRV Associates. “But if it is too disruptive to separate them, it will never be a viable topic of conversation.”

Behind the Call to Break Up JPMorgan Chase, American Banker

January 6, 2015

“These developments [regulations- may not be popular among banks or their shareholders,” said Mayra Rodriguez Valladares of MRV Associates, which works with regulators and financial institutions. “But there is a strong public interest in making the banking system safer.”

“Banks have a right to advocate for their clients – that’s normal,” said Mayra Rodriguez-Valladares, a financial regulatory consultant who reviewed the documents at ProPublica’s request. “What’s going on here is very different … this is the banks trying to convince rating analysts to make changes to their methodology, and that’s really crossing the line.”

How bankers muscled ratings agencies on tobacco bonds‘, Marketplace.org

December 23, 2014

There are always smarmy people who take advantage of individuals who are lured into trading by promises of great rewards. This article is a reminder that people need greater financial literacy before trading in risky mar-kets. It’s also a reminder that the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau and other regula-tors must remain vigilant in protecting ordinary individuals.

Bloomberg Markets

December 2014

“The Volcker rule is really where it’s at, not the push-out rule,” said Mayra Rodriguez Valladares, principal at MRV Associates.
“It’s worth lobbying for the banks to weaken the Volcker rule, because it’s so much money out of what they do right now. They’re watching very carefully what happens with the push-out rule, because that’s small peanuts in comparison.”

‘Banks Still Struggling to Decode ‘Volcker’ Rule,’ American Banker

December 15, 2014

The problems go deeper than the mere mechanics of supervision, said Mayra Rodriguez Valladares, the managing principal of MRV Associates. The issue is a question of leadership, she said.

Banks Face Tougher Exams Amid Calls for Reform,‘ Law 360

December 8, 2014

“It is a very significant concern,” said Mayra Rodriguez Valladares, a financial regulatory consultant with a background in energy finance. “There are a number of people who have understated the effect of this,” she said, suggesting that falling oil prices and volatility overseas could generate a scenario like the one that led to the bailout of the Long-Term Capital Management hedge fund in 1998.

Could plunging oil prices lead to financial turmoil?, Washington Examiner

December 17, 2014

But Mayra Rodriguez Valladares, managing principal of MRV Associates, said calling the pending changes Basel IV may be going too far, arguing it’s not on par with the wholesale reconstruction of the international standards in the same way it was between Basel II and Basel III. Still, Valladares said the changes are a major milestone — one that she expects banks will fight strenuously.

“This is the biggest news to come out of the Basel committee, because whatever they propose — whether it’s a floor, whether it’s making changes in formulae, whether it’s demanding that banks be more transparent about how they come up with risk weighted assessments — there will be a big battle, because banks are really going to push back,” Valladares said.

Ready or Not, Here Comes Basel IV, American Banker

December 4, 2014

Foreign banks are even more confused about the Volcker Rule than domestic lenders, Mayra Rodríguez Valladares explains in the latest installment of her series on the challenges that banks face in achieving compliance with the law.

 

One criticism of the loss-absorbing capacity requirement is sure to be that it is measured as a percent of risk-weighted assets, which are determined in an opaque manner and can be gamed by banks, Rodriguez Valladares said. Nevertheless, she added, this week’s announcement is “a strong signal of agreement in a day and age when it’s so hard for anyone to agree on anything.”

‘Stringent’ rules to target eight biggest U.S. banks, The Washington Examiner

November 12, 2014

“Mayra Rodríguez Valladares warns that banks may be exposing themselves to operational risk by outsourcing Volcker Rule compliance work to lawyers, accountants, consultants and IT vendors.”

I agree with Mayra Rodríguez Valladares of MRV Associates, that the regulators have shown true leadership in rebuking the banks for their Living Will projects, but not because I think they are “too big to fail.”  It’s because I think they are too important in what they will bring to the world once they are operating more efficiently.

Volcker Trouble: In part four of an eight-part series on banks’ uphill battle to achieve Volcker Rule compliance, Mayra Rodríguez Valladares cast doubt on their ability to report reliable quantitative metrics. Part of the problem is that banks intensified the rule’s data requirements by pushing for market-making, hedging and underwriting exemptions, according to Valladares.

“Los supervisores europeos deberían prestarle mucha atención a la experiencia estadounidense para que aprendan de nuestros errores y horrores. Tienen que marcar unas expectativas claras para los bancos porque si no éstos podrán alegar después que no sabían que esperar”, explica Mayra Rodríguez Valladares, experta en regulación bancaria de la firma MRV Associates. En su opinión, otra de las claves estará en que los resultados sean “detallados y transparentes al público”.

“Các ngân hàng đã bị tuýt còi và cảnh báo, nhưng chúng ta vẫn đang nhìn thấy nhiều tín hiệu cho thấy thị trường đang nóng lên” – Mayra Rodriguez Valladares – người quản lý MRV Associates, một công ty tư vấn về các quy định đối với một số ngân hàng lớn nhất thế giới cho biết, “chúng ta đã từng thấy các vụ việc xấu trước đây. Vấn đề bây giờ là liệu các nhà quản lý sẽ triển khai phần còn lại trong các công cụ mà họ có?”.

“They [regulators] don’t want to see, ‘It took me two or three months to notice and then I didn’t notify anybody. I tried to hide the problem until it got so big, I can no longer hide it.’ And that’s what your JPMorgans of this world are doing,” Valladares says. “That is not going to sit well with regulators.”

“Banks have been scolded and they have been warned, and yet you are seeing a lot of signals that the market is heating up,” said Mayra Rodriguez Valladares, managing principal at MRV Associates in New York, a consultant on regulation to some of the world’s largest banks. “We have seen this bad movie before. The issue now is, will the regulators deploy the rest of the arsenal of tools they have?”

“The municipalities issuing bonds are notoriously late in releasing their financials and do not even use the generally accepted accounting principles (GAAP) prevalent among the US firms,” said Mayra Rodriguez Valladares, the managing principal of MRV Associates.

“As far as I’m concerned, this is just a big PR exercise,” said Mayra Rodriguez Valladares, managing principal of MRV Associates. “They all come out and they all look good, but the reality is that this isn’t going to influence the [Federal Reserve] process because they’re not using Fed assumptions, you’re not using Fed models.”

“You don’t know that the one that has higher [loan losses] is the riskier bank,” said Mayra Rodriguez Valladares, managing principal of MRV Associates, a firm that consults on banking regulation. “It may actually be the better bank, being more strict, more conservative, rather than trying to play around and fudge that number.”

“We do not know how much of an increase in credit risk exposure there will be because of this expansion in the definition of eligible guarantee,” said Mayra Rodriguez Valladares, managing principal at MRV Associates, in an interview. “I’m usually more assured to see regulators erring on the conservative side, and keeping the eligible guarantors list short.”

No Sympathy for Rule-Breakers: European politicians and bank leaders are trying to undermine U.S. efforts to hold banks accountable for compliance violations, writes Mayra Rodriguez Valladares–and she says they’re doing it with a whole lot of griping.

Weekly Wrap,‘ American Banker

August 8, 2014

Mayra Rodriguez Valladares, managing principal of MRV Associates, a financial regulatory consulting and training company, said the living wills force banks to look in the mirror and face issues of excessive complexity, particularly in cross-border claims.

“Most of the time, you’re so enormous supposedly because you’re getting a tax relief, you’re getting some type of capital relief out of it, it really is helping you increase your profits. But if it isn’t achieving any of that, then why do you have all this? Why are you so big and unwieldy?” Rodriguez Valladares told SNL.

“[GAO report] is going to show that, sure, there was indeed a subsidy during the crisis, but that subsidy may
be diminishing, and there may not be any left,” said Mayra Rodriguez Valladares, the managing
principal at consultancy MRV Associates.
“I don’t think that the regulators are going to hear tomorrow that there’s little to no subsidy, let’s
loosen up the rules,” she said. “The regulators are under a lot of pressure to get rules finalized.”

“It [The Volcker Rule] is just such an incredibly data-intensive and compliance-heavy exercise,” she said. “Before, nobody ever asked them to differentiate whether they were building up inventory of bonds and equities for their own accounts or building up inventory because they expected customers to come in and demand those types of securities.”

“Operational risk is really a bear to model,” said Mayra Rodriguez Valladares, managing principal of MRV Associates, a consulting firm.

For years most U.S. banks paid scant attention to operational risk because earlier versions of Basel neglected it. Additionally, such risks, like the possibility of a rogue trader, are highly unpredictable.

“Operational risk is really a bear to model,” said Mayra Rodriguez Valladares, managing principal of MRV Associates, a consulting firm.

If you do not know what a derivative is, Mayra Rodríguez Valladares, a managing principal at MRV Associates, provided a pretty good definition in her recent article for the New York Times…

A derivative, put simply, is a contract between two parties whose value is determined by changes in the value of an underlying asset. Those assets could be bonds, equities, commodities or currencies. The majority of contracts are traded over the counter, where details about pricing, risk measurement and collateral, if any, are not available to the public.

“The Size Of The Derivatives Bubble Hanging Over The Global Economy Hits A Record High”, Men News Daily

May 26, 2014

But at least one reader has her doubts about Moynihan’s willingness to get out in front of the problem: “Holding your breath might hurt,” BankThink contributor Mayra Rodriguez Valladares wrote on Twitter.

Without an improvement in banks’ data collection, there will always be doubts about the stress tests’ accuracy, Rodriguez Valladares said.

“That’s where the focus should be, every six months forcing banks to work on their data,” she said. “Otherwise, it’s garbage in and garbage out.”

Mayra Rodriguez Valladares, managing principal for MRV Associates, said the leverage ratio, which is expected to be put to a vote by the Fed on April 8, will keep bank capital returns in check. With a significant amount of derivatives held off-balance-sheet, banks will have to retain as much high-quality capital as they can, Rodriguez Valladares said.
“All of a sudden, all of these things they had off-balance-sheet are going to be covered, and that is a ratio that most banks are going to struggle to keep up with,” Rodriguez Valladares told SNL. “Even if it weren’t for CCAR, I think the leverage ratio is going to make it difficult for them to be paying out a lot in dividends.”

Under the Dodd-Frank Act, the FDIC has the responsibility to unwind the biggest financial conglomerates should they fail, and it is going to push for strict requirements in order to protect its deposit insurance fund and avoid having to use its new powers, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

If U.S. regulators borrow Basel’s most recent easing, the big banks are “going to be very happy,” said Mayra Rodriguez Valladares, managing principal at New York-based MRV Associates, which trains bank examiners and finance executives. Rodriguez Valladares said she would prefer that the U.S. not go the Basel route on counting assets. That approach lets banks shrink their apparent assets to be “much smaller than the real extent of risk,” she said.

Precisamente sobre este tema de los bancos TBTF escribía el pasado jueves Mayra Rodríguez Valladares, una de las mayores especialistas que conozco en materia bancaria y regulatoria.

With the stress tests and the foreign bank enhanced prudential standards, the Fed is aiming to make sure it is not hit with a similar unwelcome surprise from a foreign bank, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

“In the past, foreign banks have been bailed out,” she said.

Frequent contributor Mayra Rodriguez Valladares countered lawmakers’ argument that regulation was hindering U.S. banks’ global competitiveness. Ahead of a House subcommittee meeting on the topic she wrote, “While imperfect, it is important to remember the main reason legislators passed Dodd-Frank was because of the havoc that badly managed, undercapitalized U.S. financial institutions and their use of unregulated, opaque over-the-counter derivatives wreaked on the global economy. Implementation is critical to reform Wall Street and to protect consumers.”

Mayra Rodriguez Valladares, managing principal of regulatory consulting firm MRV Associates said: “Studies last year confirmed the industry’s worst kept secret that there is a tremendous amount of flexibility in risk weightings. If the banks keep demonstrating that their risk weighted assets are much lower than what the Basel Committee thinks they should be, then it will have more appetite to increase the leverage ratio.”

‘Basel Committee Loosens Leverage Ratio,’ Global Risk Regulator, Vol 12, Issue 2

February 2014

“Regulators’ neglect of specific guidance on improving data quality, its collection, aggregation, and validation may well mean that all the work on regulatory reform including leverage ratio, capital requirements, and liquidity measures, has been done in vain,” says Mayra Rodriguez Valladares of MRV Associates.

 

“If they’re (banks) not good at data collection and aggregation, I don’t know if it (new disclosure requirement) really tells me very much about the health of the bank,” said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

 

In effect, the changes allow the largest banks to lower their exposure to derivatives and other financial products through accounting mechanisms rather than divesting some of the largest positions, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

“All these changes amount to having the derivatives exposure look smaller, and the capital required for that is smaller,” she said.

 

Over this past weekend, the final [Basel leverage] guidelines were released, containing an array of weakening measures, allowing the banks to once again reduce what they would have to count. For those interested in the particulars, I highly recommend Mayra Rodriguez Valladares for the inside baseball.

‘Big Banks Score a Big Win in Switzerland,’ The American Conservative

January 15, 2014

“Banks providing good quality reliable data consistently is critical for the implementation and the effectiveness of the rules,” said Mayra Rodriguez Valladares, Managing Principal of MRV Associates, a financial consultancy. “Everyone seems to be concerned about the pace of rule-making, but rules may not mean much without meaningful data provided by the banks.”

“Goldman can create a special purpose vehicle used to invest in private equity on behalf of clients. Then it can transact derivatives to minimize market and credit risk of those investments; those derivatives could be construed as a hedge for clients. If it is good at documenting that this SPV is segregated from any insured depository accounts, then it will have a good chance of skirting Volcker,” Mayra Rodriguez Valladares, managing principal of MRV Associates said in a Thursday interview.

“It is key to remember that Goldman is still very much a broker dealer with very little FDIC insured bank units. The real concern should be JPMorgan, Citigroup, and Bank of America, not Goldman or Morgan Stanley,” Valladares added.

‘Goldman Sachs Leans Heavily On Private Equity as Volcker Looms,’ The Street

December 13, 2013

Mayra Rodriguez Valladares, Managing Principal of MRV Associates and a former proprietary trading desk analyst for JPMorgan says Volcker “will be one of the biggest wastes of time.” However, she is “very encouraged” by other requirements of Dodd-Frank, including the strengthening of capital ratios and liquidity, as well as the requirement for orderly liquidation plans.

“What was the real problem with Lehman? It was leverage and liquidity,” she says.

Rodriguez Valladares is skeptical that bank regulators will be able to enforce the Volcker Rule effectively and doesn’t believe it will add transparency for investors. For instance, investors aren’t likely to get further insight into bank balance sheets, or granular details such as the level of activity in a bank’s trading book, or the jurisdiction where trades are booked in.

‘Volcker Reaction Pours In, Even Before Rules Are Published,’ The Street

December 10, 2013

A 2-year floating-rate note is likely to count toward meeting firms’ new liquidity and collateral requirements, which could make the note appealing to investors, said Mayra Rodriguez Valladares, managing principal of MRV Associates.  “There will be appetite for it globally,” said Rodriguez Valladares, whose firm advises banks and regulators on implementing the new regulations.

Banks have long tested their liquidity levels and had contingency plans in place, and the Fed has made liquidity a key part of its regular bank stress tests, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

“The [liquidity coverage ratio] is an attempt to have you quantify your liquidity, and the idea of having a liquidity contingency plan, that’s been around for years,” she said.

Law 360

October 24, 2013

Spotlight on Yellen: President Barack Obama made history on Wednesday when he nominated Janet Yellen to be the first female chairperson of the Federal Reserve. BankThink’s resident Basel expert, Mayra Rodriguez Valladares, cheered this selection, arguing that the Fed’s vice chairwoman knows what it takes to fix the financial system.

American Banker

October 11, 2013

That’s the problem with only seeking to regulate the big banks, said Mayra Rodriguez Valladares, managing principal of financial regulatory and capital markets consultancy MRV Associates. When a bank sells off an asset, it has to find a buyer, likely from the nonbank, shadow financial sector.

“It doesn’t happen in a vacuum,” she said. “When you push one part of the balloon, the balloon moves to the left. When you push the left, it moves to the right.”

“I have never been a fan of substituted compliance because this concept at best means regulatory arbitrage and at worst it ends up meaning no compliance.”

Bloomberg Brief Financial Regulation

August 2, 2013

But while banks provide additional liquidity, they’re also heaping additional volatility on inherently volatile energy markets, according to Mayra Rodriguez Valladares, managing principal of financial regulatory and capital markets consultancy MRV Associates.

“Banks have incredible, outsized ability to increase prices or lower prices because they have so much capital that they can mobilize,” Rodriguez Valladares said.

“The lobbyists might be less vocal, but they are constantly deploying their forces by visiting regulators,” said Mayra Rodriguez Valladares, managing principal of MRV Associates, a firm that advises banks and regulators on implementing the new rules.

“Insight – Resigned To Reform, Wall St Tries A Different Tack In DC,” ThomsonReuters

July 21, 2013

Gensler will be remembered as the Brooksley Born of our time,” Rodriguez Valladares said. “He understands that to end too big to fail, cross-border derivatives reform is critical. The downside to the democratic aspect of rulemaking is that sometimes you have to compromise even when it is not in the best interest of the U.S.” She added: “Investors in banks should double their efforts to conduct due diligence on banks’ derivatives portfolios, because substituted compliance might result in no compliance.”

Bloomberg Brief Financial Regulation

July 12, 2013

“By the time all comments are handed in on October 11 and vociferously debated, the committee may well be underway to crafting Basel IV,” Rodríguez Valladares concluded in a column that kicks off her nine-part series “Busy Summer in Basel”.

Očekávám ale také divestice z hedge fondů,komodit, části tradingu. A to je přesně to, v co regulátoři doufají,“ komentuje Mayra Rodriguez Valladares z newyorské MRV Associates.

Patria Online

July 10, 2013

“The banks will keep fighting until the last moment to soften this [leverage] proposal,” Rodriguez Valladares said. “But there’s considerable political backing for tougher rules on big banks, so they probably won’t win.”

[Leverage rule] does not mean they(banks) will have to cut back on lending, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.  Instead, they can look to sell off risky assets or hold off on dividend payments to shareholders before turning to lending levels when determining how to comply with the rule. “Top U.S. banks can meet this ratio,” Rodriguez Valladares said.

While Prudential’s insurance units are well regulated, the company’s size, global reach and investments help make it systemically important, said Mayra Rodriguez Valladares, managing principal at MRV Associates.  “I look at the asset size, I look at the interconnectedness, I look at the international positions,” she said by phone. “And I’m struggling to think, why do you think you’re not a SIFI?”

With bankers lobbying the CFTC to slow down and give foreign regulators time to catch up with it on derivatives rulemaking, consultant Mayra Rodríguez Valladares argued that waiting for uniform international rules is a losing proposition. If we have learned anything” from the experience of Basel capital rules, she wrote, it is that “countries’ differing cultural traditions, legal frameworks, and points in the economic cycle make it impossible for everyone to craft, implement, and supervise a uniform regulatory framework simultaneously.”

“This should be OK if something implodes in Ireland, London, or Japan, and the parent cleans up the mess,” Valladares says. “Let’s be big boys and girls; we’re capitalists, and that’s fine.” The trouble, she says, comes when really big, AIG-or-Lehman-size bets sour and threaten the stability of the bank and the financial system more broadly. 

Speaking to FOWi, Mayra Rodriguez Valladares, managing principle at MRV Associates explained that the CFTC has given market participants plenty of time to prepare for the mandates.

“You hear people complaining that they are not ready, but most people are as ready as they are ever going to be,” said Valladares. “I think we are going to see increasing volumes but that doesn’t mean there won’t be growing pains.

“Second Phase Of US Swaps Rules Take Hold,” FOW Intelligence

June 13, 2013

“When alive, banks’ risk management are done through business lines, but when they die, they are resolved by legal entities,” said Mayra Rodriguez Valladarez, Managing Principal of MRV Associates, underlying the difficulty of parsing out the operations of a complex institution at the time of bankruptcy.

“Basel paper offers new look at bail-in models for ailing institutions,” Thomson Reuters Accelus

June 12, 2013

“Legislators should have a hearing on why Title I keeps getting thwarted. In fact, regulators, legislators, bankers, and the public should do everything they can so that Title I works. The goal is to avoid Title II at all cost.”

‘We Have the Tools to End Too Big to Fail’ Money News

May 31, 2013

Mayra Rodriguez Valladares wrote that Dodd-Frank gives regulators sufficient tools to end “too big to fail,” but expressed concern that lawmakers and bank lobbyists are preventing them from using those tools properly. 

“Sympathy for Liberty Reserve; Regulatory Reform Reconsidered; Portents in Payments,” American Banker

May 31, 2013

While financial reform groups have been pushing for tougher rules, Rodriguez Valladares said the CFTC needed to take into account Wall Street banks’ and institutional investors’ technical limitations. The block trading and other rules mark major shifts, and the back offices that process all of the information that will have to be transferred just aren’t ready, she said.

“If after a year they’re still whining that they’re not ready, then we should have a lot less patience,” Rodriguez Valladares said.

“CFTC Derivatives Rules Bow To Market Reality, Experts Say,” Law360

May 16, 2013

According to Rodriguez Valladares, “European and Japanese regulators have long advocated for different assets to be used as capital. Americans have said that retained earnings and common stock were the best forms of capital, because they have real ability to absorb losses. U.S. Regulators finally won this battle with Basel III.”

“If the U.S. were to require higher capital requirements for its banks, I guarantee that China and other countries will not do the same,” says Rodriguez Valladares. “They will certainly have more capital to play with.”

‘Senators Try to Gum up Dodd Frank,’ The Street

April 26, 2013

In fact, assuming all assets are equally risky could create perverse incentives, says Mayra Rodríguez Valladares, managing principal at MRV Associates, a firm that consults on Basel issues. Freed from risk weights, banks may be more inclined to make certain types of loans that have historically experienced big losses, like home equity mortgages. “Banks might invest more in high-yielding, high-risk assets,” said Ms. Rodríguez Valladares. “It’s totally inaccurate to lump everything into one category.”

Also, Basel III may end up being significantly stronger than its critics say. For instance, the world’s largest banks will be subject to a special surcharge. Ms. Rodríguez Valladares says there are discussions about whether to calculate this extra capital on total assets, not risk-weighted assets. Go back to TBTF Finance with its $28.5 billion of capital. Adding 2 percent of its total assets, or $12 billion, would take capital up to $40.5 billion.

‘The Seductive Simplicity of a New Banking Bill,’ The New York Times

April 26, 2013

The plan also seems to take it as a given that assigning an arbitrary number for common equity will cure all ills when it comes to instability in the banking system, but that’s not necessarily the case, says Mayra Rodriguez Valladares, managing partner at MRV Associates.
“Why 10? Why not 20 or 30?” Rodriguez Valladares says. “People are too hung up on the numbers. It has to be about getting banks to improve their risk management overall.”

“Bernanke: Banks ‘much’ stronger,’ Bankrate.com

April 10, 2013

The main challenge will, however, be for the regulators. As Mayra Rodriguez Valladares, Managing Principal at MRV Associates put it, ”with their limited resources, it will be difficult for them to monitor all banks’ types of on- and off-balance sheet activities recorded in banking and trading books across different jurisdictions”.

“New Basel credit-exposure limits will force banks to think harder on concentration,” Thompson Reuters Accelus

April 9, 2013

Mayra Rodriguez Valladares, managing principal at New York-based financial services consultancy MRV Associates, is unimpressed with Ingves’ remarks. She believes that op risk is being obscured by the Basel regulators’ continuing focus on leverage, liquidity, disparate risk-weighted assets, securitised products and over-thecounter (OTC) derivatives. That’s despite op risk, rather than credit risk, being at the root of the global crisis in her opinion.

“Spotlight on a neglected aspect of Basel framework,” Global Risk Regulator

March 2013

“The desire for revenge may be strong, but we should not lose sight of what should be our key goal: to make the global financial sector safer.” 

Money News

March 21, 2013

The “too big to fail” banks have become a scapegoat for the financial crisis, yet all types of financial sector players, including securities firms, hedge funds, private equity firms, insurance companies and mutual and pension funds, can cause systemic risk, points out Ms. Valladares, a faculty member of The New York Institute of Finance.

“Big Banks, the Scapegoats for the Financial Crisis,” Live Trading News

March 21, 2013

“Because of the lower incomes, when you look at the average numbers home ownership is the issue,” Mayra Rodriguez Valladares, a financial consultant with MRV Associates, told Fox News Latino.

“And when you add in things like bonds and stock ownership, the number for asset ownership is incredibly low.” As Rodriguez Valladares points out, among Latinos “there’s not a lot of trust in the banking system and investments.”

Risk experts say whether banks opt to go over and above the LCR rules will depend on a multitude of factors, including their perceived risk profile, jurisdiction and type of business. Banks that are aiming to attract retail depositors, for instance, may find that holding a big buffer of liquidity could be a selling point to customers. 

“It really depends on which jurisdiction you’re thinking about. I think that in Canada, for example, they will definitely go above it,” says Mayra Rodriguez Valladares, a former Federal Reserve Bank of New York analyst, who runs her own consulting business.

“Liquidity: Banks Debate Liquidity Trade Off,” Financial Times

March 18, 2013

But the OCC isn’t the only bank regulator who should be red-faced over the JPMorgan debacle, says Mayra Rodriguez Valladares, managing principal of financial regulatory and capital markets consultancy MRV Associates. The derivatives trades were made out of the bank’s London office, which is the regulatory territory of the U.K.’s Financial Services Authority, she said.

“They slept on this one, big-time,” Valladares told Law360.

But while bank regulators deserve blame for not adequately assessing the risks of JPMorgan’s derivative trades, they shouldn’t be blamed for not being aware of information hidden by the bank, Valladares said. 

“Bank examiners aren’t detectives; bank examiners are charged with doing thorough risk-based supervision,” she said.”As long as I can see that the bank is capitalized, I wouldn’t necessarily suspect that’s something wrong.”

Law360

March 15, 2013

“Potential influence on economy and borrowing costs needs [to be] part of #TBTF breakup talk,” Mayra Rodríguez Valladares, managing principal at MRV Associates and BankThink columnist, tweeted in response to Johnson’s column.

“Do Big Banks Need to Fear a Breakup?” American Banker

March 14, 2013

“The purpose of stress tests is to see if banks are adequately capitalized for unexpected losses due to credit, market and operational risks,” says Mayra Valladares, managing partner at MRV Associates. “When we talk about stresses, it’s those extreme events.”

The biggest blind spot in the tests may be that regulators don’t test banks against a scenario where there’s some kind of fraud or malfeasance on the part of management, an all-too-common occurrence in the years leading up to the financial crisis, Valladares says

Bankrate.com

March 8, 2013

“Diese Regel kann ganze Geschäftsbereiche für europäische Banken in den USA unattraktiv machen,” warnt Bankenregulierungs-Expertin Mayra Rodríguez Valladares. “Einige Banken können sich gezwungen sehen, Aktiva zu verkaufen oder in andere Länder zu verlagern.”  Doch vielleicht spielt die Politik den Banken in die Hände. “Die Finanzreformen sind auf der amerikanischen Agenda weit nach unten gerutscht», sagt Rodríguez Valladares.

‘Tag der Abrechnung,’ Handelszeitung

February 28. 2013

Still, the new rules, combined with stricter capital requirements mandated by not just Dodd-Frank, but the Basel III international banking accords, may convince banks that the energy business may not be worth it anymore, Rodriguez Valladares said.

“Dodd-Frank Rules May Force Banks To Shed Energy Units”,  Law360

February 15, 2013

“Yet again, the Basle Committee has demonstrated how it is practically impossible to reform the financial sector given diverging interests from the different governments, regulators and bankers. The whole purpose of LCR is for banks to demonstrate that they have enough unencumbered, high-quality and liquid assets to help them in a time of real stress. Allowing RMBS, equities and corporate bonds even with a haircut only helps continue the pretence. A major part of Basle III is to include requirements that were not part of Basle II that really led to the crisis: lack of liquidity as well as excessive leverage.”

Euromoney

February 2013

“If you are suddenly more liquid, you may just transact more derivatives or make other kinds of investments,” says Mayra Rodríguez Valladares, managing principal of consultancy MRV Associates. “There’s no guarantee that this will mean more mortgage loans for Middle America.” 

Waters Technology

February 1, 2013

Others experts consider the changes as yet another case in point in diluting the Basel III. “With every part of Basel III that is gutted, we are increasingly back to where we were at the eve of the crisis,” says Mayra Rodriguez Valladares, Managing Principal at MRV Associates, a regulatory consulting firm.
 

“Basel Committee turns focus to liquidity with new standards,” Thomson Reuters

January 24, 2013

“With every part of Basel III that is gutted, we are increasingly back where we were at the eve of the crisis.”

The New York Times

January 7, 2013

“This latest [Basel committee] move shows how it is practically impossible to reform the global financial sector when you have such divergent interests among politicians, regulators, and bankers of the Basel committee member countries.”

Financial Times

January 7, 2013

“Being big and spread out all over the world isn’t what it used to be. You’ll see global banks jettison divisions abroad and at home.”

Bloomberg

December 5, 2012

“The approach outlined by Mr. Tarullo is a recognition that U.S. regulators cannot be sure a foreign parent bank will use its capital to rescue American operations when trouble strikes.”

The Wall Street Journal

November 28, 2012

“The election of professor Warren and re-election of New Jersey Sen. Robert Menendez and Ohio Sen. Sherrod Brown allow Democrats to flex their muscles on pushing rule-writing and funding for the CFPB and other parts of Dodd-Frank,” says Mayra Rodriguez Valladares, mananging partner at MRV Associates, a financial regulatory and capital markets firm.  Beyond Dodd-Frank, Brown also may push for higher reserve requirements for banks considered “too big to fail,” Valladares says. That may help them ride out the next financial crisis, but it will also force them to keep more cash in low-yielding, risk-free investments, she says.

Bankrate.com

November 8, 2012

“You can expect that Dodd-Frank is here to stay, there is going to be continued emphasis on rule writing and funding. There was obviously a tremendous amount of money that went into financial lobbying against Obama, but now that he has won, any glimmer of hope that Dodd-Frank would be repealed has gone.”

FOW Intelligence

November 7, 2012

New York-based Mayra Rodriguez Valladares, a consultant and Basel trainer in the financial industry who has worked with several federal regulators, said Romney could attempt to work with the Republican-controlled House of Representatives to amend certain provisions of Dodd-Frank.The CFPB would be a big target, Valladares said.

Credit Union Times

November 2012

“You want banks to be ready for unexpected losses,” Valladares says. The first set of Basel rules were about banks having enough capital on hand to protect them from losses due to unpaid loans, Valladares says. Subsequent Basel rules expanded capital requirements to protect banks from the massive market downturns and internal failures known as “operational risk,” she says.

Bankrate.com

October 22, 2012

Tratar de controlar la especulación  en los precios de los alimentos y  del petróleo en los mercados internacionales es difícil, planteó la presidenta de MVR Associates, Mayra Rodríguez Valladares.

Rodríguez, del Instituto de Finanzas de New York,  recurrió a múltiples estudios de caso para que los participantes en el curso pudieran percatarse de la forma en que se comportan los mercados de materias primas y los factores que los determinan .  Propició trabajos en grupos para identificar riesgos de inversión en diferentes derivados de materias primas.

Funglode

October 17, 2012

Given regulators’ stance on bank capital and the push from lawmakers, it is unlikely that big banks are going to see much change in the Basel III rules, said Mayra Rodriguez Valladares of MRV Associates Inc., a bank consultancy. There may be some give for the smaller banks, however. “They’re not engaged in structured products. They’re not engaged in derivatives. The capital requirements may be lessened for them and there may be a longer implementation period,” she said.

Law360

August 8, 2012

“It is not the responsibility of the regulators to stop a bank from losing money,” says Myra Rodriguez Valladares, a consultant with her own firm MRV Associates and a former analyst at the Federal Reserve Bank of New York. “They should only step in if could become a systemic issue or taxpayer problem.” ‘JP Morgan loss: Did US regulators know what CEO Jamie Dimon apparently didn’t?’ 

Christian Science Monitor

May 12, 2012

However, some financial experts say, how well banks are capitalized is hard to know because financial derivatives are accounted for off their balance sheets. Under the Dodd-Frank legislation, trading in sophisticated financial instruments is supposed to go through clearinghouses, which will make them more transparent. But that is just beginning.

“You have to be a forensic sleuth in order to know what’s going on,” says Mayra Rodríguez Valladares, managing principal and financial trainer at MRV Associates, a financial consulting firm in New York. “You can’t just download the latest financial report and see what’s going on with financial derivatives.”

In JPMorgan’s case, she says, it appears they were betting the economy would get better faster. But, she adds, “It is not clear what their strategy was.”

Christian Science Monitor

May 11, 2012

Mayra Rodriguez Valladares, who runs training sessions on complex financial products on Wall Street, says a lot of anger can be found inside Wall Street firms themselves. “There are a lot of people who work for these firms who don’t even make $50,000 or $60,000 a year, and they are angry, too,” says Ms. Valladares, a principal in MRV Associates.

‘Could bailout pay caps launch Wall Street Trend?’ Christian Science Monitor

September 30, 2008

“There’s still obviously a lot of uncertainty in Iraq in terms of what its role is, what government will be recognized. So Venezuela has been very opposed to Iraq having an official seat in OPEC.”

Bloomberg Television

September 2003

“Ownership of the sector is so diversified, reform becomes even more difficult,” said Mayra Rodríguez Valladares, author of FT Energy’s Reforming the Russian Electricity Market.” (Regional) energo management continues to be very suspicious of Moscow.”

‘Russian UES To Up Private Ownership In Power Sector Moscow,’ Reuters

September 17, 1999

“People are losing faith that Yeltsin is running the government,” said senior Russian equity analyst Mayra Rodriguez Valladares at NatWest Markets. 

‘Russian government sacking seen ill-timed; reform safe,’ Reuters

March 23, 1988
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