duffie in A Sentence

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    But for now, as Duffie's colleague at Stanford, economist Matthew Jackson told me,“We're still a little bit in the stone age of mapping out financial networks.

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    In fact, said Duffie, about regulators' and politicians' enthusiasm for the clearing mandate,“It wasn't so much that people were confident that it was going to reduce risk.

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    When I put the argument that CCPs will not engage in risky behavior in front of Franklin Allen, who is more skeptical of their contribution to safety than Duffie, he pushed back.

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    As Stanford professor of finance and derivative expert Darrell Duffie said to me, mimicking the mindset of bankers in the run-up to Lehman's demise,“Gosh, if Lehman failed, who else connected to Lehman might fail?

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    Duffie doesn't like that metaphor(“well that's not well informed mathematically … because of netting”), and he points out that the failure of one big node is not necessarily worse than if many small nodes fail.

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