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Long-Term Capital Management L.P. (LTCM) was a highly leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers.
- 1994
- Greenwich, Connecticut, U.S.
Dec 19, 2023 · Long-Term Capital Management (LTCM) was a large hedge fund, led by Nobel Prize-winning economists and renowned Wall Street traders, that blew up in 1998, forcing the U.S. government to...
Jan 27, 2022 · Learn how a 1998 bailout by the Federal Reserve saved LTCM, a massive hedge fund with $126 billion in assets, from collapsing due to risky derivatives trades. Find out the causes, consequences, and lessons of this historic event that almost triggered a global financial crisis.
- Kimberly Amadeo
Nov 22, 2013 · How the Federal Reserve helped a hedge fund called LTCM avoid a fire sale of its assets in 1998, when it was losing money in the financial crisis. The Fed arranged a rescue package of $3.6 billion from 14 banks and brokerage firms, without lending its own funds. LTCM used mathematical models to make profits, but also faced high leverage and volatility.
The demise of the firm, Long-Term Capital Management (LTCM), was swift and sudden. In less than one year, LTCM had lost $4.4 billion of its $4.7 billion in capital. The entire story is...
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Sep 25, 2023 · Heard Editors. The Long-Term Capital Management collapse—which led to an unprecedented rescue by the Fed—was 25 years ago. Heard on the Street revisited that crisis with a three-part series...
Oct 9, 2001 · NAMED ONE OF THE BEST BOOKS OF THE YEAR BY BUSINESSWEEK. In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management.
