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JP Morgan increased its risk so much on the initial trade that the trader who initiated the bet called it "idiotic".
This would have increased its risk since lenders view the down payment as a key measure of the borrower's ability to repay.
Ms. Weinberger said the company increased its risk and compliance budget 5 percent last year and 11 percent this year.
There is a percolating feeling among some directors, the people said, that the bank should have increased its risk operations and management sooner.
The shift in Cattles' business model over the past few years, to bigger loans and remote servicing, has increased its risk profile, says Robert Self, an analyst at Credit Suisse.
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Barclays increased its risk-weighted assets by 8 percent to £415 billion.
He said MBNA carried the most debt, which increased its risks.
And although Eric Ritondale, senior economist with EconViews, a consultancy, reckons that the government saved around $500m last year on its inflation-protected bonds as a result of fiddling its figures, investors have punished Argentina for its malfeasance by increasing its risk premium, forcing it to pay higher interest rates when it refinances debt.Fixing this mess will not be easy.
But Russia is not expected to want to increase its risk in Cyprus with another loan.
XXXXXXXXXXXX stated that XXXXXXXXXXXX had, in fact, received a congratulatory message from BHI corporate headquarters for not growing the business (and increasing its risk exposure).
Sure enough, last week, Morgan Stanley explained its quarterly loss by saying that some of its traders were still "gun shy" after last year's near-death experience in the financial markets, but that the firm now planned to increase its risk taking.
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