When Genius Failed: The Rise and Fall of Long-Term Capital ManagementWith a new Afterword addressing today’s financial crisis ABUSINESS WEEKBEST BOOK OF THE YEAR In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their fall. When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself. The dramatic story of Long-Term’s fall is now a chilling harbinger of the crisis that would strike all of Wall Street, from Lehman Brothers to AIG, a decade later. In his new Afterword, Lowenstein shows that LTCM’s implosion should be seen not as a one-off drama but as a template for market meltdowns in an age of instability—and as a wake-up call that Wall Street and government alike tragically ignored. |
From inside the book
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Page 91
... moved to Tokyo , where he had been a sort of local distribution agent for the Arbitrage Group . Then he had transferred to London , where he had seen a lot of Meri- wether . At first , Tannenbaum had been intimidated by J.M. and ...
... moved to Tokyo , where he had been a sort of local distribution agent for the Arbitrage Group . Then he had transferred to London , where he had seen a lot of Meri- wether . At first , Tannenbaum had been intimidated by J.M. and ...
Page 120
... moved into plush new headquarters . The site , overlooking a car wash , was pedestrian for Greenwich , but the office bespoke the firm's inflated self - image as a fixture among Wall Street banks . It had a large trading floor sporting ...
... moved into plush new headquarters . The site , overlooking a car wash , was pedestrian for Greenwich , but the office bespoke the firm's inflated self - image as a fixture among Wall Street banks . It had a large trading floor sporting ...
Page 158
... moved to London to launch a global bond business for Deutsche Bank . Could Mitchell and Deutsche raise capital for Long - Term now ? Mitchell said it was unlikely . Meriwether was running out of friends . When you need money , Wall ...
... moved to London to launch a global bond business for Deutsche Bank . Could Mitchell and Deutsche raise capital for Long - Term now ? Mitchell said it was unlikely . Meriwether was running out of friends . When you need money , Wall ...
Other editions - View all
When Genius Failed: The Rise and Fall of Long-Term Capital Management Roger Lowenstein Limited preview - 2001 |
When Genius Failed: The Rise and Fall of Long-Term Capital Management Roger Lowenstein Limited preview - 2001 |
Common terms and phrases
Alan Greenspan Allison Arbitrage Group arbitrageurs assets Author interview bailout Bankers Trust Bear Stearns bets Black-Scholes bond market Buffett called Cayne chairman Chase client consortium Corzine deal debt default derivatives dollars Eggheads Cracked equity volatility Eric Rosenfeld executive exposure Fed's firm firm's Fisher fund's Goldman Sachs Greenspan Greenwich Haghani hedge funds Hilibrand interest rates interview with Eric investors J. P. Morgan Jon Corzine knew Komansky Lehman leverage liquidity loans Long Long-Term Capital Management Long-Term's Long-Term's trades lose losses LTCM McDonough merger Meri Meriwether Meriwether's Merrill Lynch Merrill's million models mortgage Mozer Mullins Myron Scholes Nobel October option partners percent Pflug points portfolio professors profits Rickards risk Russia Salomon Brothers Sandy Weill securities seemed sell September Siciliano Soros stock market strategy swap spreads Swiss Bank Term tion Treasury vestors Wall Street Journal wanted Warren Buffett Weill York