Changes

The most prominent partner of LTCM was the former vice chairman of the Federal Reserve Board, David W. Mullins Jr.  Investors in LTCM included [[Goldman Sachs]], the former employer of Clinton Treasury Secretary [[Robert Rubin]], and many top executives at the leading investment banks and foreign banks.  LTCM controlled contracts involving $160 billion at its peak, and it placed large short-term bets on securities issued by foreign governments.

The most prominent partner of LTCM was the former vice chairman of the Federal Reserve Board, David W. Mullins Jr.  Investors in LTCM included [[Goldman Sachs]], the former employer of Clinton Treasury Secretary [[Robert Rubin]], and many top executives at the leading investment banks and foreign banks.  LTCM controlled contracts involving $160 billion at its peak, and it placed large short-term bets on securities issued by foreign governments.

[[Alan Greenspan]] led a multi-billion-dollar bailout of LTCM when a shift in the markets caused LTCM to head for bankruptcy.  Greenspan claimed that "substantial damage could have been inflicted on many market participants, including some not directly involved with the firm, and could have potentially impaired the economies of many nations, including our own."  No one pressed him to back up his far-fetched assertion that it was so necessary for the [[federal]] government to protect these well-connected investors.  Greenspan testified that it was regrettable that the bailout allowed the LTCM partners to retain a small stake in the reorganized fund, yet that was done anyway.

[[Alan Greenspan]] led a multibillion-dollar bailout of LTCM when a shift in the markets caused LTCM to head for bankruptcy.  Greenspan claimed that "substantial damage could have been inflicted on many market participants, including some not directly involved with the firm, and could have potentially impaired the economies of many nations, including our own."  No one pressed him to back up his far-fetched assertion that it was so necessary for the [[federal]] government to protect these well-connected investors.  Greenspan testified that it was regrettable that the bailout allowed the LTCM partners to retain a small stake in the reorganized fund, yet that was done anyway.

== Bailout ==

== Bailout ==