Rehabilitating innovation

One credit quant has a stark message for his bank, the failures of which led to a rescue by its home government. "We got what we deserved," he says. It's a damning indictment of the bank's business model, in which quantitative analysts played a key role. Prior to the crisis, his team's job was essentially to find the highest-yielding assets that would meet rating agency criteria, so the bank's structured credit team could package and sell them. The assessment of the actual risks involved took

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