Special Luncheon Speaker: Richard Bookstaber (Ended)
The Future of Risk: Are Risk Models Irrevocably Broken?
Please join the CFA Chicago Education Advisory Group for an examination on how the current economic crisis has been marked by a failure of risk management. Rating agencies used faulty models, and financial institutions failed to understand the level of risk they faced. Some have suggested that financial theory and models are based on assumptions of normal distributions, but that the markets are not "normal."
In his book, "A Demon of our own Design," author Richard Bookstaber suggests that some of the very risk management and regulatory systems contributed complexity to the financial markets, increasing potential points of failure. In this engaging talk, Mr. Bookstaber will discuss the current economic situation and place it in the historical context of portfolio insurance and the Long Term Capital Management failure.
(To view his July 15th testimony before the Senate Banking Committee on Hedge Fund Regulation, please visit rick.bookstaber.com).
Author, "A Demon of Our Own Design"
Introduction by: Alex Rabinovich, CFA
Time, Date, and Location:
Tuesday, September 29, 2009
The Standard Club
320 S. Plymouth Court
12:00 - 1:15 pm
Biography: Mr. Bookstaber is a Wall Street insider and outspoken critic of many of today's financial practices who predicted the current economic meltdown. Mr. Bookstaber was named to this year's Conde Nast Portfolio list of top 25 technical innovators, joining the ranks of Steve Jobs, Jeff Bezos, Jeffrey Katzenberg and Eric Schmidt. He has testified in the House and Senate, calling for greater transparency and improved regulation for Wall Street long before it was fashionable. Called "one of Wall Street's 'rocket scientists'" by The New York Times, Mr. Bookstaber is the author of "A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation"- a book that pinpointed the market weaknesses that spun out of control to create today's financial crisis and was ranked number one on Amazon in finance and selected as a finalist for the prestigious Loeb Award.
Mr. Bookstaber recently worked at Bridgewater Associates, the world's largest hedge fund, and before that ran the Quantitative Equity Fund at FrontPoint Partners. He was in charge of risk management at Moore Capital Management, another hedge fund with over $10 billion in assets. He served as the managing director in charge of firm-wide risk management at Salomon Brothers and was a member of Salomon's powerful Risk Management Committee. Mr. Bookstaber also spent ten years at Morgan Stanley, first designing and marketing derivative instruments, then as a proprietary trader, and concluding his tenure there as the firm's first market risk manager. He has won the Graham and Dodd Scroll from the Financial Analysts Federation and the Roger F. Murray Award from the Institute for Quantitative Research in Finance for his research.
Eligible for 1 credit hour
This program qualifies for credit under the guidelines for the CFA Institute Continuing Education Program. Please click here if you would like more information.
11:30 AM Registration
12:00 PM Luncheon begins followed by the presentation
Chef's Choice (Fruit Plate available upon request)
Members - $60 (cash, check or credit card - NO FUNCTION TICKETS)
Student-Members - $30 (cash, check or credit card)
Note: This rate is only available to students who have been approved as a Student-Member of CFA Chicago.
Non-Members - $75 (cash, check or credit card)
This is a "Passport Program." Members of any local CFA society may attend at the CFA Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.
Credit card is required to guarantee all reservations except for ONLINE reservations using FUNCTION TICKETS.
(Visa, MasterCard, American Express, Discover and Diners Club are accepted)
Register online below, or by phone: 312-251-1301
Cancellations accepted until 5:00 pm, September 28. There is a $5 surcharge for walk-ins.
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