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To: Stcgg who wrote (66029)	10/3/1999 4:58:00 PM
From: Stcgg	Respond to of 86076

LTCM Nearly Out of Business.. October 1, 1999 New York Fed President Says LTCM Is Nearly Out of Business Dow Jones Newswires CHICAGO -- Long Term Capital Management is close to being out of business, according to New York Federal Reserve Bank President William McDonough. Speaking at a dinner here during a conference on recent global financial crises, he said the 14 firms that put up the money to bail out the beleagured hedge fund have received most of their money back. Mr. McDonough said if the firm is to continue it would be under another name -- if it is to operate at all. "I can assure you that [closure] is a result that pleases me considerably," Mr. McDonough said. Mr. McDonough said the current management team at LTCM is fettered in what they can do until they pay back 90% of the equity some of Wall Streets most powerful firms put up. Mr. McDonough was pivotal in organizing the rescue of LTCM in the fall of 1998, when it became apparent the huge fund was near insolvency. At the time, the fund, run by a number of Nobel Laureates, had $120 billion in balance sheet exposure and $1.3 trillion of notional derivative exposure. It was feared at the time that the failure of a hedge fund of LTCM's stature could roil international financial markets.