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To: Harry Landsiedel who wrote (69579)	12/8/1998 12:18:00 AM
From: Paul Engel	Respond to of 186894

Harry - Re: ". I think ML was so busy patting themselves on the back after the market plummeted in Aug-Sep," Merrill Lynch was a HUGE CONTRIBUTOR to that panic. The near default of several hedge funds - Long Term Capital Mgmt. was the most visible - followed the Russian ruble collapse. And MERRILL LYNCH was a HUGE LOANER of FUNDS to LTCM and Merrill's own management - Kamansky - was a prime investor in LTCM. Merrill also had to pony up about $350 MILLION additional to help keep LTCM from totally collapsing. There's a lot of stink associated with Merrill and their stupid management practices and I still submit the rise in Intel stock went AGAINST MERRILL's interest via their LTCM involvement. Paul {==================================} Friday October 2, 6:48 pm Eastern Time J.P. Morgan hedge fund exposure $1 bln NEW YORK, Oct 2 (Reuters) - J.P. Morgan & Co. Inc. said on Friday that hedge funds owe the company about $1 billion under derivatives and foreign exchange contracts, but substantially all of this was secured by cash and U.S. Treasuries. The bank, which is contributing $300 million to bail-out troubled U.S. hedge fund Long-Term Capital Management, also said hedge funds owed it about $70 million under financing agreements and unsecured loans. About $14 million of the $70 million is believed to be unsecured loans. U.S. banks and brokers are slowly revealing how much they lent hedge funds after the near-demise of LTCM, a once high- flying hedge fund being bailed out for $3.6 billion after it lost huge sums in the recent global market turmoil. The announcement by J.P. Morgan comes on the heels of similar disclosures by Merrill Lynch and Co. Inc. (NYSE:MER - news), which has net exposure of $84 million to hedge funds and which lent $1.4 billion to LTCM, Bankers Trust Corp. (NYSE:BT - news) and Chase Manhattan Corp. (NYSE:CMB - news). All these banks, as well as a handful of foreign banks, are coughing up $3.6 billion to rescue LTCM, a fund run by former Salomon Brothers vice chairman John Meriwether that was deemed too big to be allowed to fail because of potential systemic shocks to world markets. Hedge funds are unregulated funds that use borrowed money to trade a variety of financial instruments on behalf of wealthy investors. LTCM posted staggering losses through ill- timed bets on global bond markets and interest rates. J.P. Morgan said in a statement on Friday that its hedge fund exposure figures were on a mark-to-market basis as of September 28 and most of it was therefore secured by cash and U.S. Treasury and agency securities.

To: Harry Landsiedel who wrote (69579)	12/9/1998 2:30:00 AM
From: exhon2004	Respond to of 186894

Harry: re <<I think ML was so busy patting themselves on the back after the market plummeted in Aug-Sep, that they took their eye off the ball and missed the big uplift over the last two months. Now they are too proud to 'fess up and change.>> So confident were they in the demise of the bull market they laid off a slug of people. Probably didn't have the personnel to service their accounts too well. Gee! too bad! lost out on the market and probably lost business to boot. Best Regards, Greg Gimelli