Here are some interesting writeups describing David Li's Gaussian copula function caused the current financial crisis by not taking into account correlations of underlying assets.
Quants Gone Wild - Math caused the current economic calamity - David Li's Gaussian copula function used by quantitative financial analysts. ( http://www.hpcwire.com/blogs/Quants-Gone-Wild-40388712.html )
Recipe for disaster: The forumla that killed Wall Street (Wired 2009-02-23) ( http://www.wired.com/techbiz/it/magazine/17-03/wp_quant?currentPage=all )
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