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→Long-Term Capital Management
===Long-Term Capital Management===
===Long-Term Capital Management===
:''Main article'': [[Long-Term Capital Management]]
:''Main article'': [[Long-Term Capital Management]]
Long-Term Capital Management (LTCM) was a hedge fund headed for bankruptcy in 1998 when a [[bailout]] arranged at the highest levels of the [[Clinton Administration]] saved it and its partners from ruin. Two years later it shut down.
[[Robert Rubin]], whom Bill Clinton appointed Secretary of the Treasury in 1993, previously worked at [[Goldman Sachs]] for 26 years. Goldman was a major investor in LTCM, as were many top executives at the leading investment banks and foreign banks. LTCM was a hedge fund that exploited emerging capital markets in foreign nations without any regard for the havoc that its speculations caused there.<ref>The Hong Kong government blamed hedge funds like LTCM for disrupting its capital markets.</ref> LTCM controlled contracts involving $160 billion at its peak, and it placed large short-term bets on securities issued by foreign governments.
When the bailout was arranged, LTCM's personal investors received $405 million at the taxpayers expense, which was $155 million more than another private offer, plus a guarantee that an additional $3.65 billion would remain in LTCM for three years. This sweetheart deal enabled the discredited management to remain in place indefinitely and recoup hundreds of millions of dollars. Details of the deal were kept secret.
Rubin resigned from the administration in 1999 to head up another one of the nation's largest banks, [[Citigroup]]. Under Rubin's leadership Citigroup got $45 billion of [[TARP]] funds and $301 billion of loan guarantees, and an additional $13.4 billion subsidy thanks to the government’s "too-big-to-fail" policy. Rubin, after steering the company into financial collapse, was paid $115 million to leave the company.<ref>[]</ref>
Read more: http://www.realclearpolitics.com/articles/2013/03/01/jack_lew_and_citigroup_how_the_corrupt_rich_get_richer_with_cronyism_117227.html#ixzz2P5cIL0Vf
Follow us: @RCP_Articles on Twitter
Read more: http://www.realclearpolitics.com/articles/2013/03/01/jack_lew_and_citigroup_how_the_corrupt_rich_get_richer_with_cronyism_117227.html#ixzz2P5cBg6op
Follow us: @RCP_Articles on Twitter
===Rahm Emanuel and Freddie Mac===
===Rahm Emanuel and Freddie Mac===