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To: KeepItSimple who wrote (54184)	1/4/2001 2:54:47 PM
From: yard_man	Respond to of 436258

there were rumours about a hedge fund before the cut in 98 -- don't know if LTCM was named ... real chance we may never find out, unless someone writes a "tell-all" sort of thing -- but I think that is taboo for very good reasons

To: KeepItSimple who wrote (54184)	1/4/2001 5:39:33 PM
From: Ilaine	Respond to of 436258

The LTCM debacle was known almost immediately because of the emergency meetings which were held with the banks that stood to lose from the unravelling derivatives exposure. It was basically a scandal that the Fed was involved in bailing out LTCM after individual investors had been creamed for a couple of months - hard to keep quiet. And the timing seemed tailored to crush short-sellers. Yesterday's rate cut was requested by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Atlanta, St. Louis, Kansas City, Dallas and San Francisco. That's seven out of the twelve regional banks, a majority. (The other regional banks are in Boston, Philadelphia, Richmond, Chicago and Minneapolis.) It may be more important that the Presidents of the Atlanta, Cleveland, New York and San Francisco regional Rederal Reserve Banks are presently on the FOMC - the President of the New York bank is always on the FOMC, the presidents of the other regional banks serve one year terms on a rotating basis. So the only regional Federal Reserve Bank president on the FOMC who did NOT request a rate cut was Broaddus, of Richmond. federalreserve.gov Tomorrow's unemployment numbers may shed some more light.