Climate-induced changes in the suitable habitat of cold-water corals and commercially important deep-sea fishes in the North Atlantic

The deep sea plays a critical role in global climate regulation through uptake and storage of heat and carbon dioxide. However, this regulating service causes warming, acidification and deoxygenation of deep waters, leading to decreased food availability at the seafloor. These changes and their projections are likely to affect productivity, biodiversity and distributions of deep-sea fauna, thereby compromising key ecosystem services. Understanding how climate change can lead to shifts in deep-sea species distributions is critically important in developing management measures. We used environmental niche modelling along with the best available species occurrence data and environmental parameters to model habitat suitability for key cold-water coral and commercially important deep-sea fish species under present-day (1951–2000) environmental conditions and to project changes under severe, high emissions future (2081–2100) climate projections (RCP8.5 scenario) for the North Atlantic Ocean. Our models projected a decrease of 28%–100% in suitable habitat for cold-water corals and a shift in suitable habitat for deep-sea fishes of 2.0°–9.9° towards higher latitudes. The largest reductions in suitable habitat were projected for the scleractinian coral Lophelia pertusa and the octocoral Paragorgia arborea, with declines of at least 79% and 99% respectively. We projected the expansion of suitable habitat by 2100 only for the fishes Helicolenus dactylopterus and Sebastes mentella (20%–30%), mostly through northern latitudinal range expansion. Our results projected limited climate refugia locations in the North Atlantic by 2100 for scleractinian corals (30%–42% of present-day suitable habitat), even smaller refugia locations for the octocorals Acanella arbuscula and Acanthogorgia armata (6%–14%), and almost no refugia for P. arborea. Our results emphasize the need to understand how anticipated climate change will affect the distribution of deep-sea species including commercially important fishes and foundation species, and highlight the importance of identifying and preserving climate refugia for a range of area-based planning and management tools.S

Loan Loss Provision: Some Empirical Evidence for Italian Banks

This paper uses data from a panel of more than 400 Italian banks for the period 2001 - 2012 to examine the main determinants of loan loss provision (LLP), which are classified as either discretionary (income smoothing, capital management, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly by non-discretionary components, especially during the recession of 2008-2012, and is consistent with a countercyclical behavior of LLP. Further, it is generally less pro cyclical (although not during the recent economic crisis) in the case of local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity, their initial coverage ratio being lower than for other banks

Mapping and Geomorphic Characterization of the Vast Cold-Water Coral Mounds of the Blake Plateau

A coordinated multi-year ocean exploration campaign on the Blake Plateau offshore of the southeastern U.S. has mapped what appears to be the most expansive cold-water coral (CWC) mound province thus far discovered. Nearly continuous CWC mound features span an area up to 500 km long and 110 km wide, with a core area of high-density mounds up to 254 km long by 42 km wide. This study synthesized bathymetric data from 31 multibeam sonar mapping surveys and generated a standardized geomorphic classification of the region in order to delineate and quantify CWC mound habitats and compare mound morphologies among subregions of the coral province. Based on the multibeam bathymetry, a total of 83,908 individual peak features were delineated, providing the first estimate of the overall number of potential CWC mounds mapped in the region to date. Five geomorphic landform classes were mapped and quantified: peaks (411 km2), valleys (3598 km2), ridges (3642 km2), slopes (23,082 km2), and flats (102,848 km2). The complex geomorphology of eight subregions was described qualitatively with geomorphic “fingerprints” (spatial patterns) and quantitatively by measurements of mound density and vertical relief. This study demonstrated the value of applying an objective automated terrain segmentation and classification approach to geomorphic characterization of a highly complex CWC mound province. Manual delineation of these features in a consistent repeatable way with a comparable level of detail would not have been possible

Bank Audit Fees and Asset Securitization Risks

Asset securitizations increase audit complexity and audit risks, which are expected to increase audit fees. Using US bank holding company data from 2003 to 2011, we find significant and positive associations between asset securitization risks and audit fees. After the commencement of the global financial crisis (GFC), there was an increased focus on the role of audits on asset securitization risks resulting from the crisis in the banking industry. Therefore, we expect that auditors would become more sensitive to banks’ asset securitization risks after the commencement of the global financial crisis. We find that auditors appear to focus on different aspects of asset securitization risks after the onset of the crisis and that auditors appear to charge a GFC premium for banks