The third came in 1998 when the long-term capital management debacle and Russia's default sent low-grade bond prices plummeting, crushing high-debt REITs like Criimi Mae and Laser Mortgage Management with margin calls.
With the paperwork expected to follow as much as days later, there is the potential for a breakdown approaching the scale of the Long-Term Capital Management hedge fund debacle, which all but crushed Wall Street in 1998.
Work by Bill Fung and Narayan Naik of the London Business School shows that one of the best periods for hedge-fund outperformance occurred in the aftermath of the collapse of Long-Term Capital Management in 1998.
That is a larger premium even than during the financial crisis caused by the collapse of Long-Term Capital Management in the autumn of 1998.
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The idea behind Long-Term Capital Management was that pricing anomalies in the market could be picked up with the help of sophisticated quantitative analysis.
Anyone who has studied or lived through the financial panics of 9-11-2001, the 1998 collapse of Long Term Capital Management, the 1989-1991 savings and loan disaster and the 1994 Mexican peso devaluation can remember that they were similar in magnitude.
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In September the principals of Long-Term Capital Management, an American fund that hunts for gaps in the bond markets (and has been much fawned over by financial journalists), announced that it was returning some of its investors' money because it could not find enough profit opportunities.
It was this kind of violent and sudden volatility that caused the highly leveraged Long-Term Capital Management fund to require a bailout by Wall Street institutions in the fall of 1998.
Ever since the demise of Long-Term Capital Management in 1998, regulators have worried that banks might lend too much to individual funds.
But ten years ago the Fed helped organise the rescue of Long-Term Capital Management, a hedge fund (although no public money was involved).
This mythical financial security first entered the investment lexicon after the crisis in 1998 over the collapse of Long-Term Capital Management, a hedge fund.
Only last autumn, the Fed had to save world finance by masterminding the rescue of Long-Term Capital Management, a hedge fund, and cutting interest rates three times.
The markets struggled to cope with financial crises in Asia and Russia in the late 1990s and with the implosion of Long-Term Capital Management, a hedge fund, in 1998.
By November 2007, when the narrative ends, it was already clear to Mr Morris that this crisis was much more serious than the last big crunch, the 1998 Russian debt default and the bail-out of Long-Term Capital Management, an American hedge fund, by a group of banks under the Fed's direction.
McDonough sparked controversy in 1998 when he assembled 14 banks to bail out the collapsing hedge fund Long-Term Capital Management.
Seven years ago, after the near collapse of Long-Term Capital Management , 12 Wall Street firms got together with Gerald Corrigan, a former Federal Reserve Bank president and now a managing director at Goldman, to look at ways to mitigate counterparty risk in the markets.
For others, the number-crunching crowd conjures up painful images of Long-Term Capital Management, the band of Ph.
Then came the Russian debt crisis and Long-Term Capital Management's demise.
And in 1998, Russia's default led to the near-collapse of Long-Term Capital Management, a hugely leveraged hedge fund, and caused huge losses for other leveraged investors.
Dire talk this spring of a systemic problem with hedge funds--on the magnitude of 1998's Long Term Capital Management crisis--has not played out in reality, many analysts say.
Many readers may not remember the first half of 1998, but may be more likely to recall the Russian ruble crisis in July 1998 and the ensuing collapse in the fall of hedge fund Long-Term Capital Management (LTCM).
Mr Corzine's background is in trading (Mr Paulson's is in investment banking) and he was closely identified with losses from highly leveraged bets similar to those that led to the collapse last September of Long-Term Capital Management, a hedge fund.
So Bear Stearns, the financial products division of AIG -- neither of them very big, Long-Term Capital Management -- size is not, I think, the single attribute that we feel should be focused on.
On the contrary, investors flocked to Long-Term Capital Management, which he set up after leaving Salomon.
Ten years ago this month, the New York Fed orchestrated the orderly unwinding of hedge fund Long-Term Capital Management, which foundered on exposures to Russian government bonds.
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The collapse of two hedge funds, Long-Term Capital Management in 1998 and Amaranth Advisors in 2006, were cases in point.
Our favorites: Joe Torre, the former Yankees manager now signed with the Los Angeles Dodgers, and John Meriwether, the former head of notorious hedge fund Long-Term Capital Management.
Long-Term Capital Management was the most dramatic example of a hedge fund going belly up.
In September, the Federal Reserve co-ordinated a rescue of Long-Term Capital Management, a big hedge fund facing collapse.
But for Ian Stewart, the story of Black-Scholes - and of Long-Term Capital Management - is a kind of morality tale.
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