Many investment firms dealing in complex asset-backed securities did not have sufficient computing capacity to figure out the risks they were taking, as the global financial crisis unfolded, said the managing director and chief technology architect of Bank of America Merrill Lynch Monday.
"I would argue that regardless of the subprime disaster from a policy perspective, most of Wall Street did not have the compute power in place to calculate their real risk on this stuff,'' said Jeffrey M. Birnbaum, speaking at a late morning session of the 2010 High Performance Computing Conference at the Roosevelt Hotel. "Because it is just too enormous.''
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