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You 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
by sachinag 18y ago
You 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.