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Indeed. In retrospect, it's somewhat ironic that the group of banks that bailed out LTCM included Merrill Lynch, Lehman Brothers, and AIG. The "bailers" became
by Rod 18y ago
Indeed. In retrospect, it's somewhat ironic that the group of banks that bailed out LTCM included Merrill Lynch, Lehman Brothers, and AIG. The "bailers" became the "bailees".
- sachinag 18y agoYou know who didn't bail out LTCM? Bear Stearns - the first to fall. They wouldn't play ball and it's widely assumed that the other banks saw a chance to make them pay.
- falsestprophet 18y agoMaybe. But the banks have a relentlessly resourceful profit motive. More likely, the regulators were more keen to hang them out to dry for not cooperating with LTCM. Also, Bear Stearns always was a much smaller and weaker institution. Maybe they simply couldn't afford the risk then and now.