If you're in the financial services industry, you know there's long been a debate about VAR and whether it is a meaningful indicator of risk. Whatever your view on the issue--and I think most of us would agree that it's flawed--it does attract media attention. Bloomberg reports that Goldman Sachs' VAR rose 22 percent in the first quarter to $240 million (the theoretical amount it could lose in a day from trading activity). This is much higher than Morgan Stanley and others.

Trading certainly looms as a bright spot for investment banks, as spreads have widened considerably. You can make money again. It's not so much the elevated risk that concerns people in general. The issue is the management of that risk, and whether we've learned anything from the systemic problems we've had recently. You can bet that people will follow Goldman Sachs. So risk seems to be back in vogue. 

For more:
- here's the Bloomberg article

Related articles:
The future of VAR
Is VAR an issue with top banks?
JPMorgan trading drawing some looks