Andrew Lo named one of Time magazine's 'Most Influential People in the World'
FOR IMMEDIATE RELEASE
BLOOMINGTON, Ind. -- “Big Data, Big Brother and Financial Regulation” is the topic for MIT finance professor Andrew Lo’s presentation Friday as part of the Indiana University Bloomington School of Informatics and Computing’s Distinguished Speaker Series.
Lo, one of Time magazine's “100 Most Influential People in the World” in 2012, has called on economists to change the way they approach their discipline. He will provide several examples of the potential for big data analytics to transform financial regulation, including using machine-learning models for consumer credit risk management; applications of secure multi-party computation to maintain privacy while providing risk transparency to regulators; and viewing the U.S. legal system as software.
Using the 2008 financial crisis as a jumping off point, Lo examines the recurring theme of the complexity of the financial system and the failure of private- and public-sector policies to anticipate and attenuate the crisis.
“This failure may be a symptom of the emergence of a new type of risk to the financial system -- systemic risk -- and the growing mismatch between rapidly evolving financial technologies and increasingly antiquated regulations that were never designed to address these challenges,” the abstract for the presentation says. “However, technology can also be used to improve regulation.”
Lo will speak at 3 p.m. Friday in Lindley Hall, Room 102.
He is the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management and director of the MIT Laboratory for Financial Engineering. He received his Ph.D. in economics from Harvard University in 1984. Before joining MIT's finance faculty in 1988, he taught at the University of Pennsylvania's Wharton School as the W.P. Carey Assistant Professor of Finance from 1984 to 1987 and as the W.P. Carey Associate Professor of Finance from 1987 to 1988.
He has published numerous articles in finance and economics journals and authored several books, including "The Econometrics of Financial Markets," "A Non-Random Walk Down Wall Street," "Hedge Funds: An Analytic Perspective" and "The Evolution of Technical Analysis." He is currently co-editor of the Annual Review of Financial Economics and an associate editor of the Financial Analysts Journal, the Journal of Portfolio Management and the Journal of Computational Finance.
His awards include the Alfred P. Sloan Foundation Fellowship, the Paul A. Samuelson Award, the American Association for Individual Investors Award, the Graham and Dodd Award, the 2001 IAFE-SunGard Financial Engineer of the Year award, a Guggenheim Fellowship, the CFA Institute's James R. Vertin Award, the 2010 Harry M. Markowitz Award, and awards for teaching excellence from both Wharton and MIT.