Bookstaber: past performance is no guide to future risks

Veteran risk chief says trading gains in wake of LTCM’s demise forged love of agent-based modelling

Rick Bookstaber’s CV reads like a Who’s Who of Wall Street, stuffed with spells at its most storied institutions and stints working with some of its most colourful personalities.

Bookstaber, now in his 70s and still looking to stretch the industry’s horizons on approaches to risk modelling, was the first formal head of risk at Morgan Stanley, where he had a ringside seat for Black Monday. Next, he became chief risk officer at Salomon Brothers, just after its more scandalous years, where