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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Worswick who wrote (302)	10/2/1998 4:52:00 PM
From: Tom	Respond to of 2794

Yes, Clark. Appears so. And my feeling, therefor, must be one of ambivalence. What I don't like is their having the artillery to defend that position. (They, meaning the usual suspects.) Don't know that pouring the $$$ to Brasil will encourage much in the way of changing international finance. Though a failure which would spin S.A. in another direction is something I do not want to happen. (More News) NEW YORK (CNNfn) Long-Term Capital Management LP, the cash-strapped hedge fund that was rescued last week by a consortium of banks and brokerage firms, apparently borrowed about $38 million from the fund last month to pay employees' salaries and to cover other operating expenses. The move could raise regulatory eyebrows since it suggests the hedge fund gave preference to its own employees at the expense of investors. Citing inside sources, the Wall Street Journal reported Friday that LTCM's general partners -- including the consortium of 14 banks and brokerage firms that bailed it out last week -- agreed this week to use about $100 million of the nearly $3.6 billion bailout package to pay deferred management fees that were owed the management company. Among other things, those fees reportedly were used to pay off a $38 million intracompany loan, a $50 million loan owed to a non-consortium bank and about $7 million in non-partner deferred employee compensation. Congress held hearings this week on hedge funds, to determine whether the now unregulated investment pools require greater regulatory oversight. Defenders of the loan argue Long-Term Capital was forced to borrow from the hedge fund. If LTCM had not met its obligations in early September, they argue, the management company would have gone into default, triggering greater losses at the hedge fund. By late August, Long-Term Capital's troubles were well-known among banks, resulting in loan refusals by some banks, the sources cited by the Journal said. That, in turn, led the partners to ask the hedge fund's board of independent directors to approve a $38 million bridge loan, the Journal sources said. About $8 million of that loan went to pay the nearly 170 non-partner employee salaries until the end of the year LTCM, a run by former Salomon Brothers trading legend John Meriwether, was rescued from the brink of liquidation by a consortium of 14 commercial and investment banks last week.

To: Worswick who wrote (302)	10/2/1998 6:25:00 PM
From: IngotWeTrust	Respond to of 2794

Brazil=line in sand? More like a bad distraction/variation of "watch the birdie" as the real line in the sand is China's defacto deval. Understand yuan's already trading on the black market at 20% below "official peg" now, .....and just waiting for things to settle down over here with us kickin' Clinton out on his hooded asp before making it official rate... O/49r

To: Worswick who wrote (302)	10/3/1998 7:13:00 AM
From: Bobby Yellin	Read Replies (2) \| Respond to of 2794

Hi Clark thought you might enjoy this read pei-intl.com hope you will make some comments on it bobby