A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment.

If we internationalize everything, we end up with rules that stifle freedom and innovation.

Sometimes the early bird gets the worm, but sometimes the early bird gets frozen to death.

Every side of a coin has another side.

My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of derivative securities.

All models have faults - that doesnt mean you cant use them as tools for making decisions.

I'm a theorist, not an institutionalist.