There are many financial disasters in the past and many times it appears to be history repeating itself. One such major case is that of LTCM. You will collate information about this company, its remarkable achievement and how it went bust, and what was the major risk management failure of this company. The US Feb marshaled the banks to put together a bailout plan which was implemented. All the banks who put in money were able to close out their position subsequently and make a profit. Then why was it that the company was not able to survive but went into liquidation? Why did the US Fed intervene in the bail-out of a private company?

What are the important lessons you carry with you from this case?

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LTCM was a hedge fund that was established in 1994 and managed by a group of Nobel Prizewinning econ... View the full answer