Gordon Lee’s Post

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Head of Markets Quants

I heard a story from just before the financial crisis: a new model validator introduced himself to a senior quant, who replied, "I am more interested in my breakfast than talking to you." This shows there are many "intelligent idiots" around. Yes, basic questions can be annoying, but remember, you were once a beginner too! Be kind. Having technical skills don't make you better than others as human beings. By the way, apparently that model validator went on to have a hugely successful trading career and became an MD at a bulge bracket firm.

Jonathan Schachter, Ph.D.

Model risk author, MS with Academic Press. Air BnB host. Training as a Certified Divorce Financial Analyst (CDFA). PhD quant, 24 years on Street. Model risk/validation, regulatory, pricing, VaR, ETL, CVA, PFE.

1mo

Clearly the validator should have operated per SR 11-7. “You have eggs on your $200 shirt, bacon on your $1000 slacks, and salsa on your $10,000 tie. Sounds like your eating habits need to validated.” That would be an effective challenge.

Christian Hull

Digital Leader | AI and Machine Learning | Blockchain | Strategic Advisor

1mo

In their defense, maybe it was an AMAZING breakfast?? 😂

Lenny Malozemov, Ph.D.

Executive Director at J.P. Morgan

1mo

It would be even funnier if the senior quant was a mortgage quant😀. We all know how those models behaved in the financial crisis of 2007 +.

Ruien Song, FRM

Quantitative Finance Manager at EY | Advanced Financial Analytics & Modelling | CFA Level 3 Candidate

1mo

Thanks for sharing this insightful story! I really appreciate the emphasis on humility and understanding, especially the reminder that everyone starts as a beginner. It resonates with me personally as I've encountered similar situations in my career. Looking forward to more of your valuable posts!

Arka Bandyopadhyay, PhD

Head of AI in CRE | Adjunct Professor at NYU

1mo

I could never imagine doing such a thing as the first serious quant I met was Peter Carr, who is one of the kindest people I have met in USA till date. Knowledge unlike wealth increases when you share it! 🙏

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