ABOUT THAT
REFORM LAW:
GET READY
FOR BIG
TIME DATA
REQUESTS
Team Obama’s new
ideas more of the same
What to ask before
deploying
Guarding
The Inside
Lessons from SocGen’s
$6b rogue trading loss
could help other banks
JEROME KERVIEL, A FORMER
trader at Societe Generale in
Paris whose rogue trades cost
$6 billion to unwind in 2008,
faces five years in prison and a
fine of nearly half a million if
convicted by the three-judge
panel that heard his case early
in the summer. The trial laid
bare countless ways he could
or should have been caught,
despite his assertions that his
superiors knew what he was
doing. But as Kerviel awaits
news of his fate, there’s much
talk of what banks can do to
avoid SocGen’s errors when
it comes to risk management.
One way to stop a rogue
traders in their tracks: im-
proving trading and opera-
tional risk controls which
even SocGen’s internal inves-
tigation now concedes were
sorely lacking.
But there is yet another even
more novel approach now be-
ing proposed by Cataphora, an
eight-year-old Redwood City,
Calif., software firm specializ-
ing in evidence analytics. The
approach involves monitoring
unexplained changes in an
EVIDENCE ANALYTICS
Shifting Gears, page 26
LAND OF THE RISING BRANCH
Online Ads to
Spill Their Guts
WEB ADVERTISING
With video and self-serve
kiosks, Citi’s inventing the
future of its branches in Japan
COVER STORY PAGE 18
THE FINANCIAL SERVICES INDUSTRY HAS BEEN UNDERSTANDABLY
focused on the financial regulatory reform legislation working
its way through Congress for the past 18 months. But there is
another area where the regulatory hand Of government is also
being felt and will impact financial services: online advertising.
By next quarter a coalition of trade groups including the
American Association of Advertising Agencies, the Association
of National Advertisers, the Council of Better Business Bureaus,
the Direct Marketing Association, and the Interactive Advertis-
ing Bureau are planning to release an online service that will
place an icon called the “Power I” on online ads.
When a consumer clicks on the icon, which at press time was
still under wraps but supposedly looks like a cross between the
letter “I” and a power button, they can view all the data that was
used to target them. They can also opt out of being targeted.
At issue is the responsibility of advertisers to inform consumers of the means and information that are being used to target
A new service expected this fall will give consumers details about how they are being targeted for
online ads and will allow them to opt out
Customer Tactics, page 23
An FI by Any Other Name
Wal-Mart’s not becoming a bank, but…
IN STORE BANKING
BY THE
NUMBERS
ANY SUGGESTION THAT WAL-
Mart’s going to become a
bank is generally met with
howls of controversy.
banks that are also trying
to tap those sectors. “[Wal-
Mart’s] clearly interested in
providing financial services
to its customer base,” says
Red Gillen, a senior analyst
at Celent. “And a lot of it can
be done without Wal-Mart
actually becoming a bank.”
The latest round of Wal-
Mart buzz results from an
SEC filing that says Green
Dot’s issuing 2. 2 million
shares of class A common
of credit unions have deployed image
enabled ATMs, versus just 15 percent
of banks.
SOURCE: CELENT
38%
