S1-E6: Long Term Capital Management

No hedge fund in the 1990s made bigger waves than Long Term Capital Management.  In 1996, their profits exceeded the net income for Disney, Dell and Nike... combined.  Using sophisticated computer models and massive leverage, LTCM made billions of dollars for their investors and the fund’s partners. In 1998, circumstances changed, causing the fund to implode in an epic meltdown that threatened the very fabric of Wall Street.  The Federal Reserve finally stepped in to orchestrate a bailout.  A new phrase was born on Wall Street - “too big to fail.”