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To: CIMA who wrote (23048)	11/18/1998 6:53:00 AM
From: Alex	Respond to of 116764

U.S. CFTC chairwoman knew of Long-Term's debts WASHINGTON, Nov 18 (Reuters) - The chairwoman of the U.S. Commodity Futures Trading Commission knew a Connecticut investment fund was highly leveraged months before the firm's near-collapse threatened to disrupt world financial markets, she told The Washington Post in an interview published on Wednesday. Chairwoman Brooksley Born defended her failure to act on the information or alert other regulators, saying the financial information her agency had about Long-Term Capital Management L.P. was too old by the time it could have been helpful to commercial and investment bank regulators. Born also told the Post in an interview that federal lawprevents CFTC officials from sharing information with other federal regulators unless those regulators initiate a request for the information. ''We did have that data, we knew the level of debt ... It had no relevance,'' Born told the paper. She spoke with the newspaper after the Post obtained a copy of a document the fund filed with the CFTC earlier this year, saying it had borrowed $25 for every $1 of its equity capital. Long-Term Capital Management is a hedge fund that was on the brink of collapse in late September. The Federal Reserve Board orchestrated a rescue in which 14 commercial and investment banks poured in $3.6 billion in new capital. According to the document obtained by the Post, the fund had borrowed $125 billion on capital of just $4.7 billion as of Dec. 31, 1997. The fund used that money to place bets on financial instruments around the globe. biz.yahoo.com