Last week, hell froze. The Financial Times reports:In a rare unplanned investor call, the bank revealed that a flagship global equity fund had lost over 30 per cent of its value in a week because of problems with its trading strategies created by computer models. In particular, the computers had failed to foresee recent market movements to such a degree that they labeled them a 25-standard deviation event - something that only happens once every 100,000 years or more. "We are seeing things that were 25-standard deviation events, several days in a row," said Dav[...]
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[Source: The Money Blogs]
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