Following the Russian financial crisis of 1998, LTCM, a new but prominent hedge fund, found itself on the edge of bankruptcy. Unlike LTCM, Lehman Brothers was a firm with decades of experience, overcoming some of the world’s worst financial situations including the Great Depression. Despite receiving a private buyout offer, the Federal Reserve intervened and facilitated a more generous bailout package for LTCM. Lastly, analysis of Lehman and LTCM suggests a need for more consistency in Federal Reserve bailout procedures. Edited by Professor Paul Borochin, Jimei Shen, Hantong Wu, Ryan Cunningham, Jules Hirschkorn, Michael Pena & Alexander FleissSources for What Happened To LTCM?

Source: The Guardian September 15, 2022 15:01 UTC