Wall Street Quants Not Interested In Startups

from the pay-cut dept

With Wall Street firms crashing left and right, some tech startup investors thought there would be plenty of smart and available talent in NYC looking for work, who might be persuaded to join startups. Turns out that it hasn't worked that way. Laid off Wall St. quants seem to want to stay on Wall Street, and don't seem particularly interested in joining startups at a greatly reduced salary and a small chance for eventual stock option wealth. This actually might be for the best. It helps to really believe in what a startup is doing before committing to it -- and a lot (certainly not all) of the Wall St. folks are simply focused on making lots of money as quickly as possible. That doesn't always mix well in a tech startup.

Filed Under: jobs, quants, startups, wall street

Garbage In, Financial Crisis Out

from the so-much-for-the-quants dept

With everyone trying to figure out just what went wrong to cause the rather spectacular financial mess Wall Street finds itself in these days, Saul Hansell over at the NY Times wanted to find out why all the sophisticated risk management quant algorithms that Wall St. has been so big on lately failed to warn of impending doom. His answer, basically, is that people on Wall St. were lying to the algorithms, coming up with ways to purposely enter data such that the risk seemed much less than it actually was -- in order to let them keep pushing the boundary. Then, it became a situation where people start relying on the computers just because the computer says so -- even though the data is bad. This happens time and time again. Even when people know that computers make mistakes, it's just so convenient to have a computer "confirm" your thinking that you start ignoring other warning signs.

Filed Under: algorithms, computers, quants, trust, wall street