When Louie reached out to me late last year and suggested that we work together, I jumped at the opportunity.  For many years, both of us have written on topics related to bank risk and especially the intersection between the finance industry and the existential problem of climate change.  The field is fascinating, under-developed, and critical to the future of the global economy.  In recent years, climate has rushed up the agenda of bank analysts and regulators. It is absolutely critical that these efforts not go to waste.

If a casual reader were to peruse our first 100 articles without seeing the bylines, they may assume we have a large team of contributors. We do not. It’s just the two of us.

Hopefully, this reader would also quickly work out that we are not shilling a product, but are instead trying to address climate-related risk topics with forthright objectivity.  They would see contrasting and complementary views – all carefully considered – and conclude that people from across the political spectrum are involved in their creation.

They would also get the clear impression that at least one of the writers thinks scenarios are a really bad way to manage risk!

In selecting my five favorite articles so far, I’ve tried to highlight the diversity of topics covered and pick out some of the strongest commentary I have been able to muster.  

The final article, on the Fed’s recent stress test report, is probably my favorite. It skewers scenarios – my pet topic – and praises the US regulator’s report for its honesty.   Everything else I read at the time simply dismissed the Fed’s contribution on the grounds that the scenarios were (allegedly) too mild.

I hope you enjoy the articles and consider supporting us as we head for 200 and beyond. All five of the below have been made free-to-view. If you’re not ready to make the leap to becoming a full subscriber, please instead consider proverbially buying us a coffee here👇

Tony’s Top Five Articles

Looking for wisdom in Davos dummy spits

When evil bankers publicly express their private views they occasionally hit the nail on the head.

Why understanding Exposure At Default is critical to climate risk management

Banks are not sitting ducks. If climate impacts can be anticipated, they can move out of harm’s way. Some ducks will still get shot.

Nationalization by stealth: The effect of climate change on the insurance sector

Due to rising costs, customers are more frequently foregoing insurance and companies are exiting riskier markets. With the government likely to fill the void, what do we stand to lose?

The urge for "fairness" in climate science, and its dangers

An academic dispute spotlights how people really want climate outcomes to be fair, even when the "law of the jungle" points the other way.

The Fed proves it: climate scenario analysis is bad public policy

The Fed just published the results of its exploratory climate scenario analysis. The report is revealing and casts significant doubt on the value of similar exercises. There must be a better way.