User talk:Omniscientsinatra

Thanks!
Thanks for the VaR / FED link on 2012 JPMorgan Chase trading loss http://www.federalreserve.gov/boarddocs/srletters/2009/SR0901.htm

It seems too that large broker dealers got a "cut rate deal" on their regulatory capital requirement by using VaR. This was instituted well ahead of the 2008 crash. One might argue that the crash was in in fact greatly "Federally facilitated" by institutionalizing VaR.

Had all this been over at the FAA and airplanes dropped out of the sky the post crash analysis might be a bit more disciplined. Root cause faulty Federal regulation!

I can't imagine the otherwise bright people at the FED (including an army of econometricians) didn't know that VaR by itself was a very crude tool to describe the richness of risk.

Rick (talk) 13:18, 17 August 2012 (UTC)