Op risk charge flawed, says State Street
WASHINGTON, DC - "It is difficult to see how a regulatory operational risk-based capital rule would have promoted the financial system’s rapid recovery on 9/11," said David Spina, chairman and chief executive officer of State Street Corporation, the Boston-based bank.
"Capital would have taken time to access and systems rebuilding would have taken still more time, delaying the resumption of market activity, and creating significant systemic risk."
Spina was speaking at hearings held before the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology of the Financial Services Committee, in the US House of Representatives in late February. Spina voiced strong doubts about the appropriateness of an op risk capital charge saying that "the
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