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Could CSAIL's Andrew Lo help prevent another mortgage bubble?
From today's Chicago Tribune:
A few years ago, famed financial engineer Andrew Lo built a computer model that allowed one of the biggest U.S. banks to figure out which customers were most likely to fall behind on credit-card payments.
More recently, the Massachusetts Institute of Technology finance professor has been laboring for another client: the U.S. government. Working with banking regulators at the Office of the Comptroller of the Currency, an arm of the Treasury Department, he's helping build quantitative tools to find potential credit risk in the banking industry, starting with the mortgage market.