Extremes among observed outcomes are much more often the product of “off-model” events than the result of vanishingly small probabilities. The implication is that most risk models are unsuitable for the principal purpose for which they are devised: protecting financial institutions against severe embarrassment or catastrophic failure.
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18 February 2015, Financial Times
06 January 2015, Financial Times
The people who ran big companies were always relatively well paid, but the meaning of “relatively well paid” is now altogether different. Finance employs more people, recruits more able people and pays them a lot more. These effects have not been seen in countries, such as France and Germany, that have proved more resistant to financialisation.
05 November 2014, Financial Times
The National Trust announced that a painting of a raffish Dutch gentleman wearing a white feathered hat, on display at Buckland Abbey in Devon, is in fact a self-portrait by Rembrandt, worth £30m. But who created that £30m value, and when?
27 August 2014, Financial Times
Much of the complexity of modern finance is the result of regulatory arbitrage – avoiding or minimising restrictions by engaging in a transaction with more or less identical effect but more favourable regulatory treatment. Many regulators still cling to the hope that it could be eliminated if only rules were sufficiently extensive and sufficiently carefully prescribed. But this is an illusion.
09 July 2014
Concepts of fiduciary obligation have been watered down in the modern financial services sector. It is time to reverse that.
11 June 2014
What does the death rate from violent accident in England over seven centuries tell us about moral hazard in the financial system?
26 March 2014, Financial Times
Just as dammed water finds new channels of escape, crowdfunding seems to provide a way around the blockage.
05 February 2014, Financial Times
Obtaining better information about companies is essential to the efficiency of markets and society: obtaining it fractionally earlier is of no public value at all.
15 January 2014, Financial Times
Economics is not a method but a subject – one defined by the problems it sets out to tackle not the techniques it uses.
11 December 2013, Financial Times
Although transactions with low probability of large loss and high probability of small gain carry the potential for disaster, they can appear attractive for a very long time – perhaps for ever.
14 January 2011, Scottish Affairs
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