schloss, having read quite a bit about the LTCM debacle, including the definitve 'When genius failed', I must say I don't believe taxpayers' money was involved in the bailout; rather, the Fed had acted as a prodder and facilitator to get all these private banks in line--and they all came out quite all right from this flop. Most even made some money...
There's no question that the NY Fed was applying very high pressure, and the description of the Fed trying to round up all the banks to shell out hundreds of millions for this then uncertain bailout, when they were even more under water on similar schemes, is one of the best sections of the book.
Yet not even a year has passed when Meriwether was at it again, slapping together 200 million and running another hedge fund... I wonder where he and his buddies are now. I know Dr. Scholes has just visited the court in RI to testify...
M_e
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