Were the measures used to evaluate Wall Street trades flawed? Or was the mistake ignoring them?

Merrill Lynch couldn’t escape the housing crash as record waves of homeowners defaulted on their mortgages.

Risk models used on Wall Street failed to keep pace with the growth in complex securities, experts say.

Risk models used on Wall Street failed to keep pace with the growth in complex securities, experts say.

The models of risk modeling used on Wall Street failed to keep pace with the growth in complex securities, experts say.

Porsche may have pulled off a brilliant new-fashioned corner in Volkswagen stock, using derivatives in clever ways that no one had thought of before.

Volkswagen shares were nearly halved after the controlling shareholder, Porsche, took steps to ease a squeeze on short sellers that more than quadrupled the stock in days.

Traders who placed bets on Lehman Brothers’ creditworthiness before it went bankrupt have settled their positions “without incident,” according to a company that tracks derivatives contracts.

To tens of thousands of German residents with modest investments, the Lehman collapse hit close to home.

To tens of thousands of German residents with modest investments, the Lehman collapse hit close to home.