{"entity":{"id":9466,"slug":"long-term-capital-management","name":"Long-Term Capital Management","type":"company","role":"Hedge fund that nearly collapsed in 1998 due to derivatives exposure","description":null,"imageUrl":null,"createdAt":"2026-04-16T00:04:00.991Z","updatedAt":"2026-05-19T09:27:03.636Z"},"electedOffice":null,"significance":{"score":8.6,"components":{"totalFindings":0,"connectionDegree":7.6,"recentFindings90d":0,"activeResearchJobs":0,"goblinAttributions":1,"recentSyntheses90d":0,"moneyFlowChainsTotal":0,"closedLoopMemberships":0,"moneyFlowHopsRecent90d":0},"computedAt":"2026-10-16T01:34:31.424Z"},"facts":[{"id":19896,"text":"Long-Term Capital Management collapsed in September 1998 with $1.25 trillion in notional value of OTC derivatives and only $4 billion in capital","confidence":"primary","dateOccurred":"1998-09-00","source":{"title":"Born's testimony and news reports","url":"https://stanfordmag.org/contents/prophet-and-loss","publication":"Directed Inquiry — Web Search"}}],"connections":[{"id":18132,"relationshipType":"contemporary context","description":"The 1998 LTCM collapse and subsequent regulatory discussions happened during Bliley's tenure as a financial services committee leader, informing the context for the Gramm-Leach-Bliley Act.","confidence":"inferential","firstDocumented":"1998","lastDocumented":null,"other":{"id":8848,"name":"Thomas J. Bliley Jr.","slug":"thomas-j-bliley-jr","type":"person"}},{"id":12552,"relationshipType":"historical_comparison","description":"Long-Term Capital Management's 1998 collapse is often compared to Bear Stearns' 2008 failure, both involving systemic risk from derivatives and high leverage.","confidence":"inferential","firstDocumented":"1998","lastDocumented":null,"other":{"id":8820,"name":"Bear Stearns","slug":"bear-stearns","type":"company"}},{"id":12551,"relationshipType":"investigated_by","description":"Long-Term Capital Management collapse was studied by the Financial Crisis Inquiry Commission as a precursor to the 2008 financial crisis, given its 1998 failure with $1.25 trillion in notional derivatives.","confidence":"inferential","firstDocumented":"2009","lastDocumented":null,"other":{"id":9467,"name":"Financial Crisis Inquiry Commission","slug":"financial-crisis-inquiry-commission","type":"government_agency"}},{"id":12437,"relationshipType":"impacted_by_repeal","description":"The 1998 collapse of LTCM highlighted risks in unregulated derivatives markets, which were expanded after Glass-Steagall barriers fell.","confidence":"inferential","firstDocumented":"1998","lastDocumented":null,"other":{"id":8857,"name":"Glass-Steagall Act","slug":"glass-steagall-act","type":"instrument"}},{"id":12428,"relationshipType":"precursor_crisis","description":"The LTCM collapse (1998) raised concerns about systemic risk that the act's deregulation did not address.","confidence":"inferential","firstDocumented":"1998","lastDocumented":null,"other":{"id":8855,"name":"Gramm-Leach-Bliley Act","slug":"gramm-leach-bliley-act","type":"instrument"}},{"id":12382,"relationshipType":"historical context","description":"Summers was involved in 1998 LTCM bailout discussions while at Treasury, preceding his push for derivatives deregulation","confidence":"inferential","firstDocumented":"1998","lastDocumented":null,"other":{"id":8823,"name":"Larry Summers","slug":"larry-summers","type":"person"}},{"id":12563,"relationshipType":"bailout_participant","description":"Société Générale was one of the international banks that contributed to the Long-Term Capital Management rescue in 1998.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":309,"name":"Société Générale","slug":"soci-t-g-n-rale","type":"company"}},{"id":12562,"relationshipType":"bailout_participant","description":"Deutsche Bank participated in the 1998 bailout of Long-Term Capital Management organized by the Federal Reserve.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":983,"name":"Deutsche Bank","slug":"deutsche-bank","type":"company"}},{"id":12561,"relationshipType":"bailout_participant","description":"UBS was among the 14 banks that contributed to the $3.6 billion rescue of Long-Term Capital Management in 1998.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":482,"name":"UBS","slug":"ubs","type":"company"}},{"id":12560,"relationshipType":"bailout_participant","description":"Citigroup was one of the major banks that participated in the 1998 rescue of Long-Term Capital Management.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":9014,"name":"Citigroup","slug":"citigroup","type":"organisation"}},{"id":12559,"relationshipType":"federal_reserve_official","description":"Timothy Geithner, as head of the Federal Reserve Bank of New York's markets desk in 1998, was involved in the LTCM bailout coordination.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":153,"name":"Timothy Geithner","slug":"timothy-geithner","type":"person"}},{"id":12558,"relationshipType":"bailout_organizer","description":"The Federal Reserve Bank of New York organized the 1998 rescue of Long-Term Capital Management, coordinating 14 banks to inject $3.6 billion.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":614,"name":"Federal Reserve Bank of New York","slug":"federal-reserve-bank-of-new-york","type":"institution"}},{"id":12557,"relationshipType":"government_official_involved","description":"Robert Rubin, as Treasury Secretary in 1998, was part of the government response to the Long-Term Capital Management crisis.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":8822,"name":"Robert Rubin","slug":"robert-rubin","type":"person"}},{"id":12556,"relationshipType":"regulator","description":"Alan Greenspan, as Federal Reserve Chair, was involved in the Federal Reserve's response to Long-Term Capital Management's 1998 collapse and the organized bailout.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":8850,"name":"Alan Greenspan","slug":"alan-greenspan","type":"person"}},{"id":12555,"relationshipType":"regulatory_filing","description":"Long-Term Capital Management filed with the SEC on 2006-02-28, indicating ongoing regulatory interaction after collapse.","confidence":"primary","firstDocumented":"2006","lastDocumented":null,"other":{"id":391,"name":"Securities and Exchange Commission","slug":"securities-and-exchange-commission","type":"government_agency"}},{"id":12554,"relationshipType":"bailout_participant","description":"Goldman Sachs was among the consortium of banks that contributed to the $3.6 billion bailout of Long-Term Capital Management in 1998.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":9013,"name":"Goldman Sachs","slug":"goldman-sachs","type":"organisation"}},{"id":12553,"relationshipType":"bailout_participant","description":"JPMorgan Chase was one of the major banks that participated in the 1998 bailout/rescue of Long-Term Capital Management organized by the Federal Reserve.","confidence":"primary","firstDocumented":"1998","lastDocumented":null,"other":{"id":150,"name":"JPMorgan Chase","slug":"jpmorgan-chase","type":"company"}},{"id":12578,"relationshipType":"Contextual","description":"As Treasury Secretary during the 1998 LTCM crisis, Rubin was involved in the Federal Reserve-brokered bailout while simultaneously pushing against derivatives regulation.","confidence":"secondary","firstDocumented":"1998","lastDocumented":null,"other":{"id":9449,"name":"Robert Edward Rubin","slug":"robert-edward-rubin","type":"person"}},{"id":12413,"relationshipType":"historical precedent","description":"Born's 1997 congressional testimony about derivatives threatening markets came in the wake of the 1998 LTCM collapse, which was triggered by derivatives speculation.","confidence":"secondary","firstDocumented":"1998","lastDocumented":null,"other":{"id":8849,"name":"Brooksley Born","slug":"brooksley-born","type":"person"}}],"contradictions":[],"permalink":"https://www.goblinhouse.net/entity/long-term-capital-management","timelineUrl":"https://www.goblinhouse.net/entity/long-term-capital-management/timeline"}