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By Gillian Tett
Published: December 23 2010 15:21 | Last updated: December 23 2010 15:21
This Christmas, a bevy of elegant models are on display. Not just the long-legged female variety (although you can see those at this season's parties in New York); instead, regulators, bankers and investors have been flaunting their own smart models, as they attempt to predict what 2011 might deliver.
But as this economic catwalk gets underway, it is shot through with irony. When the financial crisis hit, many observers blamed the disaster on the misuse of financial models. Not only had these flashy computer systems failed to forecast behaviour in the sub-prime mortgage world, but they had also seduced bankers and investors to take foolhardy risks or been used to justify some crazy behaviour.
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