Banks warned over regulatory risk
WASHINGTON, DC – Banking organisations should not overemphasise regulatory risk at the expense of more significant business risks, according to John Allison, chief executive officer of BB&T Corporation, the North Carolina-based $107 billion financial services firm.
"A lot of the regulatory requirements don’t deal with real business risks, but deal with what I call politically correct risk, the risk that tends to be over-managed. In the long term we have to adhere to the regulatory clamour, but we have a huge increase in relative regulation driven by an overreaction to things like WorldCom and Enron. Inevitably that reduces the focus on something that will bite us in the future that we just don’t know about today.
"We have limited resources, and if we spend
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