The Evolution of the Wall Street Business Model

The video discusses the transformation of Wall Street, highlighting changes in business models, the rise of electronic trading, and increased regulation. It explores the transition of physicists into finance during the 80s due to complex mathematical needs. The evolution of quantitative finance and the cultural shift in trading floors are examined. The importance of risk management and the limitations of relying solely on mathematical models are emphasized, noting the unpredictable nature of human behavior and market dynamics.

Discuss the impact of regulation and compliance on trading practices today.

What challenges do banks face in understanding the risks they are taking?

How does human behavior complicate risk modeling in finance?