Long-Term Capital Management

→ Financial Crisis Inquiry Commission government agency

investigated_by inferential since 2009

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.

→ Bear Stearns company

historical_comparison inferential since 1998

Long-Term Capital Management's 1998 collapse is often compared to Bear Stearns' 2008 failure, both involving systemic risk from derivatives and high leverage.

→ JPMorgan Chase company

bailout_participant primary since 1998

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.

→ Goldman Sachs organisation

bailout_participant primary since 1998

Goldman Sachs was among the consortium of banks that contributed to the $3.6 billion bailout of Long-Term Capital Management in 1998.

→ Securities and Exchange Commission government agency

regulatory_filing primary since 2006

Long-Term Capital Management filed with the SEC on 2006-02-28, indicating ongoing regulatory interaction after collapse.

→ Alan Greenspan person

regulator primary since 1998

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.

→ Robert Rubin person

government_official_involved primary since 1998

Robert Rubin, as Treasury Secretary in 1998, was part of the government response to the Long-Term Capital Management crisis.

→ Federal Reserve Bank of New York institution

bailout_organizer primary since 1998

The Federal Reserve Bank of New York organized the 1998 rescue of Long-Term Capital Management, coordinating 14 banks to inject $3.6 billion.

→ Timothy Geithner person

federal_reserve_official primary since 1998

Timothy Geithner, as head of the Federal Reserve Bank of New York's markets desk in 1998, was involved in the LTCM bailout coordination.

→ Citigroup organisation

bailout_participant primary since 1998

Citigroup was one of the major banks that participated in the 1998 rescue of Long-Term Capital Management.

→ UBS company

bailout_participant primary since 1998

UBS was among the 14 banks that contributed to the $3.6 billion rescue of Long-Term Capital Management in 1998.

→ Deutsche Bank company

bailout_participant primary since 1998

Deutsche Bank participated in the 1998 bailout of Long-Term Capital Management organized by the Federal Reserve.

→ Société Générale company

bailout_participant primary since 1998

Société Générale was one of the international banks that contributed to the Long-Term Capital Management rescue in 1998.

← Larry Summers person

historical context inferential since 1998

Summers was involved in 1998 LTCM bailout discussions while at Treasury, preceding his push for derivatives deregulation

← Brooksley Born person

historical precedent secondary since 1998

Born's 1997 congressional testimony about derivatives threatening markets came in the wake of the 1998 LTCM collapse, which was triggered by derivatives speculation.

← Gramm-Leach-Bliley Act instrument

precursor_crisis inferential since 1998

The LTCM collapse (1998) raised concerns about systemic risk that the act's deregulation did not address.

← Glass-Steagall Act instrument

impacted_by_repeal inferential since 1998

The 1998 collapse of LTCM highlighted risks in unregulated derivatives markets, which were expanded after Glass-Steagall barriers fell.

← Robert Edward Rubin person

Contextual secondary since 1998

As Treasury Secretary during the 1998 LTCM crisis, Rubin was involved in the Federal Reserve-brokered bailout while simultaneously pushing against derivatives regulation.

← Thomas J. Bliley Jr. person

contemporary context inferential since 1998

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.