LTCM

  • News

    Long Term Capital Management Founder To Impart Infinite Wisdom Re: Perils Of Lax Risk Management

    Long-Term Capital Management co-founder Robert Merton, former Maverick Capital chief macroeconomic strategist Steve Galbraith and Massachusetts Institute of Technology’s Andrew Lo were recently named by the U.S. Treasury to serve on the Financial Research Advisory Committee of the Office of Financial Research. The Dodd-Frank Act established the OFR within Treasury to “serve the Financial Stability […]

    / Dec 3, 2012 at 7:00 PM
  • News

    New JPMorgan CIO Doesn’t Get Out Of Bed For Less Than A Great Depression-Level Financial Catastrophe

    Earlier today, it was announced that Matt Zames had been named JPMorgan’s new Chief Investment Officer, to replace Ina Drew, the woman who supervised the trader responsible for the firm’s whale of a loss and was dismissed over the weekend. Previously, Zames served as the firm’s head of fixed income and while he may be happy to be seen by senior management as a guy capable of putting out at a fire, based on his experience, is probably at least a little bit underwhelmed by the task.

    From Kate Kelly’s Street Fighters:

    Matt Zames had been down this road before. He had started his career at Long-Term Capital Management in the winter of 1994, shortly after college. There he witnessed firsthand what could happen when a bunch of shortsighted executives didn’t manage their risk properly…By the time he reached the sixth floor it was after midnight. His team was huddled with a group of Bear managers in one of the conference rooms. Zames had one question for the Bear team: How much cash and collateral did it have on hand?…Zames shook his head. “This isn’t going to be necessary,” he told them. “This whole thing is fucked.”

    Guy had a front-row seat for LTCM and Bear’s implosion and now he’s being asked to do what, exactly? Clean up a minor mess at a *solvent* bank? It’s almost a little insulting, actually. Call him when you’ve got SOMETHING REAL.

    JPMorgan Says Ina Drew to Retire, Replaced by Zames as CIO [Bloomberg]

    / May 14, 2012 at 12:25 PM
  • News

    Nassim Taleb: Ben Bernanke Doesn’t Understand Risk

    “Did Ben Bernanke see the crisis?” Nassim Taleb asked on Bloomberg TV today. “No,” Taleb answered himself, “He was flying the plane and he crashed the plane…[Bernanke] reminds me of the LTCM people. They had brilliant people with great academic records and they blew up the fund and almost blew up Wall Street…Bernanke is someone […]

    / Nov 12, 2010 at 10:49 AM
  • News

    Next Best Thing To A Free Sandwich: A Bunch of Hedge Fund Guys Get Fired

    Here’s a lil’ pick me up for all you bankers thinking you’re the only ones taking it up the tailpipe– JWM Partners, the fund started by John Meriwether after things started to go downhill at LTCM, which recently lost 24 percent in its $1 billion fixed-income hedge fund this year through March 14, just laid […]

    / Apr 29, 2008 at 12:43 PM
  • Hedge Funds

    Third Time’s A Charm?
    How Much Investor Money Can John Meriwether Lose In One Lifetime?

    The investment firm run by chief John Meriwether lost 24 percent in its $1 billion fixed-income hedge fund this year through March 14, two people “with knowledge of the matter” have told Bloomberg. Meriwether, of course, was one of the big men behind Long-Term Capital Management LP, which collapsed in the late 1990s. LTCM lost […]

    / Mar 19, 2008 at 4:55 PM

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