Terry Gross of NPR’s Fresh Air recently interviewed Ed Thorp, one of the original “celebrity quants” and Scott Patterson of the Wall Street Journal and author of the new book, The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It. “In 1962, Ed Thorp became every gambler’s favorite mathematician [...]
Paul Wilmott, in a recent New York Times editorial, put forth the argument that financial trading by algorithm has gotten so fast that it threatens to bring down the entire system: “If a fall in the market leads to people selling according to some formula, and if there are enough of these people following the [...]
How will financial services organizations handle complex analytical decisions in the future? How our financial institutions made decisions about their operations and customers is at the heart of the financial crisis we’re in. Managers of these institutions entrusted decisions to analytical models they didn’t understand. Regulators allowed banks, rating agencies, and nonbank financial firms to [...]
