In the financial industry, risk is a part of doing business. Any banking expert will tell you that in order to reap a financial reward, one must take some kind of risk. Otherwise, we’d all be stuffing our money in mattresses. Still, the kinds of risks taken by the major banks during the U.S. financial crisis were too large, and resulted in a blow to the economy.
The Office of the Comptroller of the Currency (OCC) proposed a series of guidelines that are designed to accelerate enforcement actions. These guidelines outline how federal regulators expect the largest banks to proactively deal with major risks that could cause another financial crisis.