Category: News

Known as quants, these are the mathematicians and physicists who devised the financial instruments and computer programs fueling stock markets’ spectacular rise and collapse.

And while in good times they became financial rock stars, quants — short for quantitative analysts — are now being cast as villains of an industry that abandoned its values.

“Regulation is generally bad. You should let the market decide what the people will get paid,” said Matthew Prest, managing director at Close Brothers investment bank. “Sometimes regulation has the opposite effect of what you want and I think bankers’ salaries regulation would fall under that category. I don’t hear anybody calling for Hollywood star salary caps. This is a trendy, fashionable thing to do, it will have bad consequences.”

The end of light-touch regulation heralded by the G20 summit will lead to far-reaching changes to the conduct of business in the City of London.

The violence came as a senior Pakistani Taliban commander said his group was behind a deadly suicide bombing Saturday night in Islamabad and promised two more attacks per week in the country if the U.S. does not stop missile strikes on Pakistani territory.

Sunday’s suicide bomber set off his explosives at the entrance to a mosque in Chakwal city in Punjab province, some 50 miles (80 kilometers) south of Islamabad, said Nadeem Hasan Asif, a top security official in the province. The blast killed 22 and wounded dozens, he said.

Pakistan is crucial to U.S. efforts to stabilize neighboring Afghanistan and U.S. President Barack Obama has said the release of additional U.S. aid to the nuclear-armed country depends on how it tackles terrorism.

The attack in the central city of Chakwal came a day after a pilotless U.S. drone aircraft killed 13 people including militants in the northwest and a suicide bomber killed eight soldiers in Islamabad.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.

The findings, published Tuesday in the monthly journal Radiology, are the first to show that the stone core of the statue is a highly detailed sculpture of the queen, Huppertz said.

“Until we did this scan, how deep the stucco was and whether a second face was underneath it was unknown,” he said. “The hypothesis was that the stone underneath was just a support.”

Bankers said an administration proposal to jump-start lending, a problem at the heart of the industry’s crisis, is encouraging.

“People are looking at that. It’s positive,” Morgan Stanley’s John Mack told The Associated Press in an interview. “We think it’s the right thing to do and now we just need to get the details.”

At least four people were killed and 21 wounded in the two days of fighting between government troops and the Awakening Council in Fadhil, a ramshackle warren of narrow, fetid streets on the east side of the Tigris River where al-Qaida once held sway.

Members of the Fadhil council said Sunday they decided to give up the fight and hand over their weapons to spare the neighborhood, whose bullet-pocked buildings bore witness to intense combat there two years ago.

In London, more than 150 groups threw their backing behind the “Put People First” march. Police said around 35,000 attended the demonstration, snaking their way across the city toward Speaker’s Corner in Hyde Park. Protest organizers said they wanted leaders from the world’s top 20 economies to adopt a more transparent and democratic economic recovery plan.

Brendan Barber, who heads an umbrella group for Britain’s unions, told assembled protesters in London’s Hyde Park that the G20 needed to “take actions to lay the foundation for a better world.”

The discoveries were announced Wednesday by Washington D.C.-based Conservation International, which spent the past several months analyzing more than 600 animal species the group found during its expedition to the South Pacific island nation in July and August.

Of the animals discovered, 50 spider species, three frogs and a gecko appear to have never been described in scientific literature before, the conservation group said. The new frogs include a tiny brown animal with a sharp chirp, a bug-eyed bright green tree frog and another frog with a loud ringing call. One of the jumping spiders is shiny and pale green, while another is furry and brown.

The plan that Treasury Secretary Timothy Geithner intends to announce Monday aims to use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.

The initiative will seek to entice private investors, including big hedge funds, to participate by offering billions of dollars in low-interest loans to finance the purchases and also sharing risks if the assets fall further in value.

About 40 protesters parked at a cul-de-sac Saturday afternoon and walked to the Fairfield home of Douglas Polling. They were met on the curb by two security guards, and one activist read a letter detailing the financial struggles that many Connecticut residents have faced. The group then left the note in Polling’s mailbox.

Polling already agreed to forfeit his bonus, but the protesters want AIG executives to do more to help working families.