HSBC, BNP Repeatedly Breached Trading Limits in Volatile Markets

The transcript discusses how HSBC and BNP Paribas exceeded their value at risk (VAR) limits in March, highlighting the limitations of VAR as a risk indicator, especially after the financial crisis. Despite the challenges posed by remote work, banks have managed risk without major issues. Other banks, like Deutsche Bank, have also skirted rules, but detailed information is scarce due to commercial sensitivities. Regulators have shown some leniency due to exceptional market conditions.

What challenges do banks face in providing detailed information about their risk management practices?

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Why might other banks not have disclosed their backtesting exemptions during this period?

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