Bye, robot: regulators rein in capital models

Bye, robot

Outside the hotel, Chicago was warming up – the previous day’s rain had stopped, the fog had lifted and the city’s towering skyscrapers were outlined against a sky with more blue in it than grey. Inside the hotel, the conference was winding down. It was May 2, the last session of the last day of the International Swaps and Derivatives Association’s annual conference, and a former regulator was telling a room full of bankers why capital models were in danger.

“What you have to understand is that