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To: Bobby Yellin who wrote (40730)	9/24/1999 3:29:00 AM
From: Alex	Respond to of 116927

LTCM PARTNER BACK IN RISK BIZ By JESSE ANGELO ------------------------------------------------------------------------ A Nobel laureate involved in the hedge fund that almost sank the world financial system has landed a new job - as a risk management consultant. Robert Merton, a partner in John Meriwether's Long-Term Capital Management, has been taken on as an exclusive consultant by Wall Street powerhouse J.P. Morgan - one of the banks that helped bail out LTCM. Merton's hiring was first reported on Institutional Investor's website. Merton has been advising J.P. Morgan CFO Peter Hancock and other senior management on capital allocation, corporate strategy and risk management. A spokesman for J.P. Morgan confirmed that Merton had been working for the bank since early summer. Last September, world markets were rocked when LTCM suffered massive losses in the bond market and saw 90 percent of its capital wiped out. At the urging of Fed Chairman Alan Greenspan, a rescue was organized to keep international markets from being sucked down as LTCM sank. J.P. Morgan was one of 14 financial institutions that ponied up $3.6 billion to keep the fund afloat. LTCM has already paid back about half of the $3.6 billion and Meriwether has been quietly feeling out investors for a new fund. LTCM had seemed like a sure winner with Meriwether's fabled team from Salomon Brothers and two Nobel prize winners - Merton and Myron Scholes. But insiders say the Nobel laureates were really more of a marketing tool than actual advisers on strategy. Merton, 55, is well respected in the field of quantitative finance and has been studying ways for corporations to integrate risk management and capital allocation. nypostonline.com