Introduction The Feral Reese Ba of New York serch in 2 gay san stone slain he eae of Wl ec. Though ay lark smn ney cecil pig The eed th ‘vs oi ded ko or hey were the ye hat ‘eden finance bad ol This one score tbrage fand had amased an amazing 100 tao ns tal al of borrows hort ha om the ker at MDs tae, Ae mona ashi debe nse wast wa hy mean the wot of Log Tem: praems The fan had bere i hoards deri coneac which had enc necro wth every hank all See Those hota etily side bran marker pit covered a 0 mul sme than lion wert of exon I Long Term detail ofthe nk nthe on wou ft boli onesie of contrac fo whch he tr ie longer ‘ten ther won hey would be expe to emer and tmcnae—raks Undone the wl be ney eer tk nha wpe uw onesie gins a id tesco rom Lng Term, amis ae ed an mans, ha deri were rails nee Regul a worried atu he pont ike af hese vee eat eure, which ned toe sunny financl one Compl chat of secprcal obligations Offa had wondered ‘wha woald happen if neg ink ee chain bowl a Nowcog en tht he markets wou stop working tha aig wo ‘Sse tha the tn nl woul ome ching dwn Tames Cay, carchompng chef eee of Bear Sams, fd teen song that he would sto ling Lng ers ade alow Sgaomlon. A the tre fhe yea tha wld ave ere ree for Long Term apa a een 47 lon Bat Sarthe paste wevko of nice Romi’ deal, Long Ter had alee ting loaee—dy ser day ar dy cpl was we othe nium Cayne dh hk would wre aoe The fond ha sen sk Wicren Ba or ny ha ge [Nk every hak cold thik fe Now iba place 0 noc load boned tert cook 2 work anc. I they aed concer, perhaps a eatsrope cad be tro Alboagh MeDenvngh dit ys. be wanted he bake to met $4 bllon apd esc the Fn He wanted the td fhe ertmerom woul be ite the Bakr hat Longer a sendy cad han more than evaugh noble, Long Tem's sect, lek atta ‘Sats ha cited eer ce om Wall ts with ner Sain, “Mer th the oat had gh ong Frm to ing Bad ith he find. So ad may eter hak Bur Longer ad spurned ‘hem. The profesor had fren wing to ade th et telson cena om he bk balay. The Bakr ot te thar the once hug Long-Term was plein for ter p ‘nd the bankers themselsen ere hurting fromthe trl tat Long-Term bad eed les. Golda. Sache® CEO, Jo Contin was fain rev By his part who were ried y oldman rcem ting hoses and why nie Corin, id want use tr diminishing apa to ep competitor Santo ‘Wiican of TancerSalomon Sth Raney, a safle i simpy pending mger wih Cir which Well sa 35 te “owning gems Bs tro caret, ead ese shud ‘oo ahrage anew year exe had bes he ahi pd for Meriwether cera ws ot Ken bloat aoa 1s MeDonaagh looked around hea, ery one of hs sos asin pete ot eee any sh dy on acon Tog term The ala fhe Booker tsk ad len precip The ankers were aad ap was MeDonough, hat the ba toe the had bans toc with delay fn As, a8 ad ‘prado Ro, Bary and so eo Lome Tem Capital woul em {opal of Wal Sree ed Ful, coma of Uchnan Brtrs a ing of thats copay mason the vere fling Se 0 oped tereposre to LongTery David So nb ees he pat Sestak Union fk of Swzertand thou ie hak wae leds infor to dep ithe olshi veep Long Term an ha so ered an nun Thomas Labrecgues Chae Manan hd pon sora tan the hee Fs of S500 malls bore Lace "hough about es more, he sneha fn ep ‘David Kemaray the peti Merl cheman, wat wor most fallin wer of nth, Mars tock ha fallen by bal ‘So bll ofs rber vl al sings lo aay. Merl ad ‘ule shocking hn ding lam, Now owen ce aig, rst tle oman wh pvsomly had inset alms $+ milion nthe fur was eee techs that would ea Lang Tem cl Taped Ba he Baer mach sna there ws the eo tomar Long erm He thou he def geting the Barer re were longa bs. "Koran recog hat Cyne; the maverick Hea Seas she excite would bea pot lace Bear hichsketed Lang Terms ic, Koo the gt of the hee and heer dan any oer Ath eter baker nenousy shied hse Hetero, Koma’ numer asked Caye wre he oa ‘Cae state his postion sear: Bear Sears woul nor inves 3 or a moment the har the eam of Wall Sree, were sit Anthem he a esaTHE RISE O! LONG-TERMMERIWETHER Tie yrs iste en ed ‘linn 49793 aciies der samed Felsen 8 Co. wat Sethe bak ing poncho Ecsten wet go Sao rad tet witha pomp tht hd seer of Semen’ pater aah erecta sheraeacel ade of theo,“ ot ges tear bat feat any in > Esto paded wath he, Hw The etuaton wast: Ecstin ade in Tey bil free ‘crv of US. Treasury Billa a fixed price in the future, They oft ‘esa dp dn npn eal og wrnid py abo th same oon lt roma fate they woul eo oom it et wa roma ink hat the pis rudd omserge Arcee wan aif mg in ce rade which wt ‘he suet of Eckatin’sbainan of Long-Term Capita frre bsand ideo of sry arbragcur wh has ve pid the wade Felsen dd’ know whether the sas pits wal and Est ere, A tht ase an ws ‘hero pres wa change rive ocak ae, 1s buying the bl furs and horn ht being on a define inthe pie of the acl il, Eekan ely had tn ‘chinappoite Gretna.” Depending on whether pes med op {edown, he ould expect make money on ner ve on ‘he ote Bt fog asthe cheaper suche frree=one by ide more for ky ee et han dl the bly Fens roe laphs winning ede would reste tha hs eso he ter ae, This the Ra eo age ecm had mad hi fo ay tm pcs with ase, As hemade mare mane. be grads hs ake. Fr some ea in Jone tor ee moral paren wa esc fe ft more eos thin bls. Conn the cinta slat would Feast el Febcn pro ery a a, Ba ad of ‘ering th up weed even fare Eesin wash wth aie ‘atin alan Bechne seat st Mervetoy a6 had Ripped, Bad realy stp ban axbarage group within Sshman, He insanysawtht Ekin’ trader seme, base wer ose the ne shld cove, Turin the eaten Sloman woul een eof ion of {opt which talon about $309 milion. The pares mete rus at redo ake nr ts ton, Fr the tet on Prof wees the spe contd wa alors sled 9 fers ss. The Rr apt aso st ob on le let tse he feo partner mad Allan Piney and each afermon the partes would nervy poe otto Finest ace how mach hey had Miner coy sed tht hey wo cme out hes “Ke hte” Jn eth manag pre ‘elim, “or go ee.” The ricer comers nd Salamon made aba, Haya ‘ne aed ancl rr the, bat Meier undrstnd e ewes promoted to purer the sry text eae Mor porns pepe nts rer whch ne hese cet ile scion, the atpcnaly tiled Domestic Fed come Aa ‘tage Group, nn had cre blanche todo spend ade wth Se Inn's cpl Mermei infact, bd ound i es wok Torn nt947 Merwe ad grown vpn the Roscoe wton «of Renan the South Sef Chip, 4 Democrat tick Cate sng of Mayor Richard Daly He war oe of eee ‘Shien ba par of rexel fay nln or eons “kwon an ley. I teal the ete ghborboal was arly Merwaher hee vinuly everyone i the ares 2 econ Word ha rv an he asta, shop nd par Ie ordered he at bythe aks i Minos Coral toud and bo the nth by aed board feces beyond hi a 2 tema’ ar of ram ade factories Wi wa por oi Borba ceraily wasn nis Metis fat Was a9 unten; his mabe worked fr the Baa of Eaton. Bath fares wore ur. The Merete hs a4 silt, naan rst house with cn lawn an tidy anon mich oof hee thor i. Everyone wnt hi chlen pec scl ee tow who didn't were raced as “pb”, Merwe, ee Sle ae shi and dark ble, and John de a Sale le snry an later Meme Catholic High School, ea by Ac finan oss. Dili nan haa The bos wee rapped ath tule mee nr et elo the hncke or a ee ‘Ses fscsted im such Joyeean reine Meriwether grep ‘Suton toa perie seme of onder At one of Merwe’ irendn» Barks on sll, “We were fad to got around a [meray cod chic eh ns wold punish you frie and Sou'd be snr to Hel” Ae for hi rl demain, wa sh, Shiu ison che, oe il ay fh pee ‘pala, hie sen hwy ede forse, He lie forthe Nationa nor Saxe, sor eae ih ark in mathematice—aniperable bj fora od eke Phat onelnes of mathenancsapered to hin, He sat ver ded bya srs frei a fw ep of Bus would ‘te the rer slp, Although Meriwether had of mouth on mye crn ole ever git it sete ouble Pra sith stings he ep any reklewimpue rity ander rapand oad hi ive end comely rr He wa eer a no 2p, led but no 3sandoun Te wan ec asta nought a neighborhood ar ine i wich wuld ve bn bl thas en anything bt average Merve als ihe game at ony when the ale mere fc im his avr to pe few a ee Cami ey 3 Feld wach cura approach taking old he pie toi advantage He ls oft ssa lt ply ink the lanes couresy of arly radar i. ate seme of thea he woh! eto the Chicago Ca, ba ot tl eg the meter pre ihe hw the de wld HNbwing st Wry Festi foray to etn naa at mele os, but would be wrong st tht cuted oa ‘this pets evento Mester hi tha this moe ‘esti aed boy was 2 Horas Alger hm etn or nyo ‘Walle. “Johns hi lcs oes mae mane nigh cba yng tock, hots decade "Vs nt aod iru” And tha wa hats larpasson nomen tpl Frm ane age, ad aed thecoure tpl pars, an unl patie fra Roseman He was a standout mumbcr ofthe Manel schol tes and ce ‘wo the Cape Suburban Cathe Ley gl arament, He slo cated at he Fowmoor Coun’ Cl whsh nrlved Ica ino bone south of the ci The sopernenes a Fsamoor tok shine se eres, kal ung de i ‘ay forthe rst planer cae ele On the mee ier te hi for a Chik Eran shai nae or a a memescaary lr wo had ha the hays sing 9 College scholar for ce. Meriwether picked Northwest Univers in Franny ina on the chil wees of ake Mh ta, ten fe mes ands world sway rom Rouse Hs Sry upto shen ha hight wo ahr conflate ves The Fist was the eae of wellbeing to Be dred fn fg ‘troup sachs nigtborhond oe catchy rom elgg. toe ales and its: Onder and can were vt home Bur second, Meter had learned a 0 dee ea lon handicap at game hat aay che om he Hck ven ped ‘te Norhwesen he ugh high shal mah for» yo hn sot to the Univer of Chicago for asin dere, whee 3 fran tamer sm same Jon Corie ae Meretbers alo Will rev mas ne of Bi caomaten Merwe worked hs 0) ‘heap usne scholar an anahar at CNA Fancal Covporain, sod graduated vars. The wet yee Merve now 2 si it went seen eral with hogting sys and wound ple ‘sow ied by Slo ew st swale, at wa The cone of rst hangs thr wore soning bond markers every there TU the miso, od ring had hem all sport An Wr houphe hand, en fom the tt department of is oa tea come, and longa the ds dn et, be tras gencrlyRopy ta purchase, dl be ave any ‘he thee Fores sel rd bo the oto of ‘manana bond posto ache 4 ih cur han the nest fay yo best ehoar nex, ws ral foreign, Tha wat “nd ng bocune oso nex ene The rising Bond gure {ei Salomon’ own Sener Homer a Harardedicsed lan, “isa elas the per Wislom Homer nl sam of 3 Metro ty of Inve! Rate soe Ht te Pree, ws 2 pen ‘Citra breed on Wall Soc shat was soy in doppeae oes marke en cota totow fed, wee ch scrsed by fed latent: fed cures, ele eet fay at a fined gold pce (ya sue ut he epidemi n ‘ato thtinfsed the Wet the le 1960 dered tm cozy ‘rl rec, fation ox re rt and tho ie ‘Mod md, bought hon perce ae em arate ok Iai th vl or re. tn 197 the Une Sats Fd the gl prs then the Arab embargoes If Renbeders ell eked Sy isin fei, be aap of he enn Cente Raid “hich nas wey ovo fy Buc cip ccs sed the ls ever Band nenor mst of hem Kae ee nosy, were Igor arr taming pat. Gradually, goverment au ihe lake wer forced to drop thc etn tert fates “Sernce Th wold of fie eam we de. “Seba ddcly eed usin, ney was the hxc sow Fares exhangs devised ne contacts Financ ods Socks Tear ile sd bods and Japanese yen, and everywherethere mete nw insmod a et hen esl porto manages wee waking ps wai totrade them By heen fe 197 fin ach Solomon wee icing and cing bn nwa that Home bad weer eed of Ing moree rte for at ad ding thm to Diese ey chewable ares, “hc ober bg change war the comput. As 2 the end fhe 19x ehenever aes wanted pice abn thy wold ek tp ina ehh ble fork. In 196, Salonen fed hathonatan Main Uti, hog Salomon’ a computer ewe same he mont pop mates hy oo en schon heb here han San at ng nen ape uhh ek cae sd an pt ton price hat ey mm nc oh Bye say eo aes had cir sos bande clr hich sey Aken they he ond marke ‘Merivther, eed Salmon one Gancing ak known a the Repo Deparment, gt her fo the bond er a ng trpsvtny One pees kt bon werd ‘em puting wth cane and oppor, eel for youn Shrpeyed ant Merete, wo die Know 4 wl wher fe Seren Now Yr, ed sean ost ate land stom dave th bone mk rh ands ae» pe clo spel athens Ine ma of na tine thee vale eaiy panto, Esra, ae fae Sate» ben ce On cafe lend fom te Coupon an he bond you caniedmoney so pace fodey. yuu oy {premio fora nd hat pede 1s pc, How to a re itn That wl end nya he nd he ‘Be paments you onto i yeu Rae one) forms tthe {eur pli mana of wee ed by eas here a helo cna iy onde The wer rhe ko a, a es te ot scrum, norms gre Sl va, Cone e tres a ond ur apn Uk So Hele Pacha Someuhatrbier than GE, Amazon.com, ries, Thee Sood neon demand a igher incest when hyd Aa ton 8 compared ith Gyo co Rav compared wth Fem Deng how ach heritage pa echt hamden a math srl. The ie be ha, the we the speadhat the preser ee ierce Reece Seddon andthe ld on realy ke) Tests General, hough noes, te spread abo ieee ith nett ‘esto demand sy biher lem se ea note 8 0 Thay bl Bec tewmerany gene “Ths rule arth cashed dy ordi @ as matical ys ad spreads om db cts toga he wor Thy ane fiat ad intl theres of rest eon, fn fs mo wonder that Meret, who hep tony ead nd Feds Sow ater New York iy ea dead andthe pea saver gency bs soared: Meriter chon that he ma Terk potedar me eey come ety at st ecm he Bal he ds he col. id woot, nl Meyer ads made lions “The Arbrage Group wh he omen 1977, ark x ale saxipotae hin ions colt as the mal a Te Catal ast epi, bik for ry the 199058 laboratory in which Merete ould Bs accustomed nd ‘thing and sling nds or catomer But he Arbre Cro, Ted by Merncer became 2 pacpl ring Sloman’ ow co {Bona the id ns este hd few compton the pking were rh von he Ext ade, he ee hat 3 Speend—any.Berwoe + ate conrad the andeing bond, Berweca two tnd erg, He old sh bet om epreads ‘vide, bu convergence was his deine theme, Te ppl ‘het eof hs aes might ere ako pelts Minter wd oad wl he won cre Oss ay these oe ness mht Be re and witha thee ous ede earl the long or 20h experience erie te poe. Eee seats ays cme tha wa the leo be ad leaned fom the Fein aa, and tan leno he woulout on, years ate Leng Te Capit: ues was diferent les, cay alabi he Meru might have dew om he sen hse, had escent coe so fase sing tre may wel wry sound evenly suming. ous Hat ‘as properly conc Fein th set al re om ite odo she sade ay ga rmeaming oF ou, tht fe ht 3 rok fhe mcr, By the cary aon, Merncther was one of Salamon’ bgt yong stan Hi shes and umplacabl poker ace played prt shaver ila Melony the Sry pater eh hd in fermewed his Joba has elma Yo haven le shar be thinking.” Meriwether former slg the, Water Muha ews echoed hin smemen of Mester nL Pater He wore he ae lak halen expres wh un 3s heh when he tHe a sys pound ty cm ttl he emt ha cml dsr tara ad {oeedandt ma im se ea man ah pros ert fel cam be Ir was pty ha he hook empl «spite in shh Meriter alge dared Casta pt sins hd Poer for S10 muon, aoe merely fen sr sen apne Foal these canoe Merc lor sabes ht ‘ean bs Mercer war the prt th wi ated amb He ‘rs cation ol he pave aay ae ‘ground, hi family hi rie pat wee mah ts Hat vc Keene 2 one be ad “des isa“ ea 0 nen pate shar even whe the Lg, ein tlt fronepage news, 2 New York Tne wor oem tv ecrie Uf Atether ad ey lg ced forse sot pe toma eens who thought him anos: Snare was evs atbte for a ade, bie mn xs, Wa Mee ‘ete c,h mt haven Ike the nee had developed oh kev se enti ‘har wo igh Saloon fn ey el ee Hic soltion mas dept mp: Wy sf ks who sweeter? Traders ho ol rea mht ‘ining, 38 oppo tothe floc; aciniie Neandereal who ied om ter ole? Acadia wae coming wich enya Inkioe who fa Ren ping onieligblediserttions 08 Ith for ear Wal Seta tare ob them, buon Ko recatch, wher they'd he out of arms way On Wal Suet the ‘ahead were sgt ay “quant wi forthe ms amet Talig Crag Cont, Jy hea marr bond rain tS Iam a 9p el orang Ror allel, handome, undo ge alg th cei, Sore a en 3 gota nc Ie at he a lp forward on te Rake am nd be Ba ring nb enn lento pon tat Mer ‘rte ated inate he prteed he coo dpi och Sh thr oun an igh guaretatie spread orks “os Wal Se exes ware mye byte sade woe fue Meriwether ath rahe mith 2 NLA om Chagos as ‘notable with That wom beh edge a 1983, Mercer {led Ec Ronen a ser atured MIF Harvard Buss “Shoot ata profes f Rowen cook! ese any hs sds Th son 2 mod uf Concord, Ms “Snr, mony nage Rowen corpse rea who ad Seay teen ang uaneanive metho to make iaseemen. AZ Hira be was sing Lacolc and de, Ronen wan com Pelion br be was stan commanding in claroom, A Maine, he loko he» thin Bese mone. The sae: Sete ugha i “hey ea the st uta i” acorn 0 fear colleague Rose, who wan grag exams whe Met ‘eter called and wan ing, 2 he real, ovely 0.009 rae nwa offen audion for Sk hl Te aye be he was ie Merve dd’ sop the. Air Reset e ir Vico Hugh an aan Aric witha maser degen ance at the London Sol of feonomes Grogiry Hawk a Akane ‘th ha pede Bl Coy aman frst atorny ga {ral and fad hen gre 4 PD. cal econ fom MT: nd Wiliam Kester an tn, mathematically minded economist Sek. MRD. romonce aga -MIT apd elle of Rose {se Harar raaly the merdex, ahd suey the sare as lsc Hild, whe ad fr dees wn ME, Hiibrand ws Tired by Salon’ sear depen the wana hme ofgam, bur Meriwether icky mowed im ins the_Asbiage {Goan whch our, mas the a of he fie Longer Cap ‘al The expats immediacy tok Wal uc. They downloaded ine ther computer ofthe past hal es they sal ge she ans on They delle he bande ioral eli snd ey Imola how toe pices sould have she frre, hl Hen, Sen market pice somewhere, somehow Ro ne, the on pores ml sl them “The md dit er thom to ad; hey peri’ cote srpument fr the human computers to conse They snp’ ompbeated wld. Maybe th ld on tora Testy me Wat {bier han onary ws tothe pl an eget Br tay the pea bene th wo wat sally nao, ompasd tv asm pend forse eer counts pape The mol Condensed the meno pointed ngury.Atme of the pp Si, "Grne the ate of hing ard he meet shape eld Corks, vlaliie, nee entesare the facil makes makin Staton that are meomtee with each her?” ‘Th haw ty taeda thsi how hey ehoghe.Esery pce was seen itqwo atest were in coi thre mio be on pay for The whole experiment would suey have fl excep eso apy ecamanrs Fite ress ee oat Ty ck ‘he keting and opportunites wre pew sl a ewe rather suas deratnes, The prefered nie refer licens mast, ml os ee Correct noone would hve anything a te. Sxe he ts thy ade in were stil ening though, ps ween net ad thee wee oppor pny. Moree the pete Bagh tthe job an td coord or ck shat er iy ‘Af markets ten ott ice. In pial thy ve spreads hse sn es ky bunds moa rd nao Thi flowed lly fs oad reflec, par, he uncut it shams ne (Overtime i mart eco mote thc, sh ode ‘nul he es vole apd htt mesmo he Front demande by avesrs would fo son in he ay {som for iaane te sends on sapy pen dv ae which more eee percentage pins “They Inked at his tw an be phere cn he hat ach oe tc of Arbitrage ele. “They so There ng oe Uren omar nore fics marke, "A! sap spread dl rg «percentage pe a sets ay srr on Al of Wall Se dil thee sic the ‘Slama government desk, rn by the resin ary Cast The Clones was that Meith Abe Group i ory i Chile awe agit they the ara, especie ‘versie Hird ely foul the Ret Backes by tet ‘rd the fe more aes than ethers daalmen inle Gon enough ine sen eanugh apa he young Beis Scere fhe ld ma erg and Merete ho eles irre ead onfrenca erat ach ext, Ba veh the eines ween “hat was the second happy ecumstanethe p poo sicker company piss ot bom he alc ade, Bur or Minti the aprime tadde?have Sk the profess were sinply fo of place brand, 9 Shoneor orm Chory Hil New ewe, ke a academic Strum of Al Gores ais aan, he aver the spo Sse suet with wonden and echnical heat {hil reste Once arate ori the erage Group ed Tock Hilvand nr of bing and seling era pa of eee Filan eps condacting eo “But he ae pred ‘spn. tie clngesascanoned the pofae Ranier 1 heading Hoo sho backs was thing the sane thing “ely!” Surana by sol rae the bape ere ‘Get inlua Krank cations rfewce whe Da many a ‘herons mass al he Saran salon. Reseed a sary nae of ho, Buti min whch may af he partes iad gone oo ilge, mich es eat shoo a HT, e ws ay sd eaten ‘Merwe had hepatica en ing this group co Wall Serge ve that alton compen woud ater tate “He tok a hanch of guy ho in he corporate word wee conser es,” noed Jay Hig, then am sneer Baer imo Those guys wold be playing wth hie rls Bll abe sve fr Job and hey ee 2"Theor wc hoe a ig reo pea ses hey cl ps ha anh compet ie Sr ‘rc hay cay tra coma Meteo ‘esate ple er then dc se he ‘inn made Abr hs wrap cae tenes ihn cna wh rl hey ele totam nen the Siren wad yee plying on Sandy” and Be sis hae nT he yu We de Te we ae ‘an led pt tie, nck Hon nd Regen ‘tm Serer vo!» po rho a towel son hopes may he tk ee tats an Hensel ea mt on i ‘ear Heh wo om we aed Shem theme Hema’ hasee si wh sss pn hn an te pe es td "nao Merman iia pat oe wor sr ie Te nr cr hn ae Snel meni yt ty a fay he ns Ci a Tey mrs Tey on i owe ho pune hn ty shel spas ae stort tutte pe ra Stee forbes ea ives aig pa tnd taal nner be ie or sb rn tte tins she wl ge chorishan es eon oe fhyed por ead te a ae ae ‘el py tor say oe ee Sido dlr Rows epee sete el wh ne ots iin hd Te, whe holt ea al serpin ep oat heyy nando ocr cone onhen fy af sure ibe ‘seemed addicted to gambling: “You could never js ue to “i F Ssh] scp hw plying pes ns mena sre ck” Co ld Sutra ht fl ae ‘ala Meet wo 3 no per md we ie Rese tro ron wh fad sneer has he eh Stow Hand sia Hearse ag hada detache hat wa lm exteshuman Once, hem ake ‘thr wanna ves ne whe more in mores Tati Hibrand traded e newer ath el ner ao fe about bse, “The Arsrae Groot ew al cae ey cow. They tina doubler of dese ne mile of Soon vas trang or, wich wath mode forthe sete fk Tom Wiles The Bowe ofthe Vote Ran ie meager in Arerage,found ts gush aspect verter ad ee Ante {rev et even pl with im Ba ey fe aes ee th he Stke remained al ut weehiped Meriter. They ape of a 8 Ts ef» Mos wi a bro he Palen Minter dh eat return the rae, bet be ave the sm thine ore woth isms ad ciny sulted th pe {csr challenged th and de thoes. Ad he roared ‘hem with ea yay He never teamed, Be woul have Iced the hd To the rer the two ah] NL that rll be “Though he ad peat oe api, Merve nly i ‘heading loony den aguezed in wh he key He wd ‘Saivame whe dong cedar wade ad spe the pe {ery aking pebing vest Snehon, he sented eee Ion ina alain odes He ed sy hat be never red anyone who wae sare tha he wa. He da alk aout te bc noone nel cn he wan ein ire what The aes wee doin He dd bul the mde bt be gasped ‘what he model wre ing, And ested heme en Ioaey oa 4 margge rae aed for persion dbl oy sd ITAL poe i rer thay "Dowty wan to know ae ours rade Amy sd lester ag ely deeply fel the ear NE so "Ny tad was when Ted you.” Merimether had mired Mim Mura, og quero mn {llores nt an she ewo of them Ine ia mode 0 edo sparta eo York Avena om the Upper Eat Ses Thy same cle, according w 4 slag bt rene chides,‘Nd fom Min, LL fay ws Salanion, He dd eave his se en far lnc fc sont a en Profs mah, abo i cnr lanes a or lg sacha he rd ipl td Ta Ben under ser dome}. wad eave of he apes tan ‘ese ther ane tony ear ken, The ea he ‘ang mi onder Chine fod and ay sone aed one Adak, TL, hs esau tony vial, would scowl and oy “Lon, ges Pm ping hiv toe apy dk ad ack ry oficend wor there Ams among Wall ees Ways tankers JL iid sore wth prc chal a po op tanh ‘he rich ects howe mere hed fe Ue se func inthe raigees, who re ft becom tends amos ofthe svt pps Meriwether dana tena fh Pup his ptr ra Silom’ nal por a ed os MaDonalds Ever a oui, he mide hs group ite of susie acobesse loyal and nee the word Re had Ie Romo 1s cor werkt by sco come st Vig the Shae FR a Ha, Atough JM, Knew i makes, i rpuain ay wader way vraoh His ea sil wasn shaping el wh “ty undead ape He ws suk en peaking ‘rete tir mening,” Bt confines rege won wee tombisacyand worked on thor spike ste Combo ea the trades sermon sltsnfigece, Seve th ser ‘asa poner pores comune ta theese Same sassrace. Moveovce J milienes to hina Faifand an he hs i i smn plang on one the oops Yo tik ta hey wd may hae eae Ay Aibirage made more mone the rou tinea ade. Meth ling ale sich Chait command fer all bd tags ct ovement bes tag evel ororte hon. Euroesn hod at hanes ‘an seed lage the group apy tsk nw ad pce pasar, Bu tes in Slam began ose. LM. wou Sad one of bis boyd or Victor Hahani—to Salomon {don lice ort Toyo office, andthe mary woud Sse Thera very sind but you should Be on ns Bigger in = ew tes fies! Avi hey cd a Hila ad tu he seas nde codec rating them wth tnt ete, One tne be ened 6 peru sone Com ty ter that hey sald ftom pre following tem Saar ht of tond poe. Te tae Tinted bay tie ‘ian bbl hs ea ack an forth Sue eae hand amd sonrcly del, Conse he flaming hype” I ths anf he wore nrg amet fom on Bighs 0 cd in phon, hile cron the sam, and neu epbaling 2 com pre cen The Avbrage Gru, nigh nthe mile of th ca felled pandemonium, memed t0 be 3 mses, prised tnheakur Hlth tine the bos were acing ae bec fare langage in x semi the eer bal they were a ing and plying har poker Inthe hep sits ad wh hei asus they could ein chry pk the et rade wie vy che worked a feet pace, “The grup wis exept semi ave adopted LS innate screens pote colin, Though any rader maton with heir Salona calles acl he een fe By Chat ap other Though bape soaked wp aloe valuable hr hat pe hough premier bona Hom et op even pe rsanch arm and uel node eben Salorc Iehm bout rade One tes the al Prati Bache hired sory 3 Salomon morgage tae whch was anslred & cOup “dhat was the fst tig be wanted?” the Pr Bache manage lowing vemonered "Anaya? Beer campater sytem ot sre No. He waned fk onthe ling cabin. rele heirently!” Drive by fail loyly wo Merete she Abra ‘Group sured ss wr ain theca thir we ee he Fare Long Tere argo emote om he rt of Wall Sue. Hilhrand tcc so ose with i pay that he ve eid toe Salamon Breer ek i pte is neg sound Hitend pred the em climate vee kg. which, he argued th some ptt, ork oe touch oman ad ling ocr meh Then dled Shae Arba saul hae to pay fort hae of the company “ater, bese the soup di at here Toc sight we earn pinplen, Hiand complained sham bing sad wisely senor” af ery rae and cee chek shod eo how Sealtrnch The dep rath wn hc ions they eve 2 cape tue space” ig ido [ML {lige "Tey did ete tea hat every shed” "ilirapd and Rowe cotnaly rene [for ream They viewed Salmons compet sagen tinh Wray fred the wea oll depramenty cn. Sc Aap ses mking met of the mney they fl thy hey oe sold rapt rewards the ride Rall Pecan me +B ifr Si ‘een Pecan’ hl ated eel Pet ft yal {ne contal oth fem to dt fly son he la ‘aren fle Hib, who weed sry rath terms as sees oer what he ek ped oS lorem The twenryaeveryearol waminlewnonwr est hel cou hata tm Sate fy m persue Be, now 4 mar of Sons Dd TUM ered eo emper hi pte young Tare andl imbue them wy ea i We ea pc pa er ited essen sh War i ae eter hor sat mans yf We ohana Cae Md rrr of sh oncommom mre gt ned hea ee thar pmo, Heche heat sana aaa ce hot sare fom Son He wold ol SOTA pelea hs spe oe Bs oat ee Hen” He pees oon cle ‘sa hen te me ees he sa eh ane sae tes bmn oc lms ctr an yo tite nine ch trop dy 130 mio verses ue ran so go hat he a eee eee Se The fim hed nd hen al cae Presi by his young rads ho simply wou ie up in 8 Merneber pede Gund tape Sola de whch Fevers would ot pad 4 fnedy as pce share of rhe rou rite Theda maou eet ater Hid ad het Ered ole Typ, Mk hamel ot of the rangement, ‘ing Gateund ay hi whatever be thought was a. Then Ne (eg ha a Benes ya nd Head, ho othe gest as, ‘ok home phenonea 25 millon. Akthough iiband modesty fence unin te work drive a ena ews sy ro the src lnngscing ements parca 38 fevathee Saloon Sparen ws pn! under ouch a fora AS Chante Menger Bates parte and 2 Salomon etx par The more hyperhyeeda shon wet ark ai ad Te gacul a thiourea ade aed Pal Mover was rad, Mowe ha ber at of Aerage, br acon of yas Fre ha ben ford ese ha caine ato ran the Rover Ineo dks Moves had» wy ame closes ee and an ite tmoner In tpi yest er the orm ove brands pa. Mowe Tents Merteher sd made a tart conf: he ha subtoda fake bi to he US Tas 0 gin an untried share of 1 povertmea hod wasn Stunned, Meine she, “there anything ee” Maze sit ‘Merncthe took the mat to Gand. The pai along with waodhertop exces ges ht the mater was serum they ‘onehow dit mong alk Although upc wih Monte Men ‘rete aye yal hi. is nd wo maine he ls fh Fat) dams other the dfeel Mose sy hard work who ad np bu ace acim in char othe nee ek Th wat a mistakeno an ec maa br an erin jodemen vt omy JL vanguard allegiance nat Mowe ms eta whore ace by pg than By elie otha peatland kcal bren the lo firm Tense sid hat Move cine bad en so Kish tly spp by his soperrs. Que sacral, Merve, pone eal of Slomons Bond sine, had thought un oe a Ie ders Bad eo hing tthe US. Tena, it Ms ee limon dence tht More snfesion to Merch ha sl tra tb, for be hed commuted arrows ie Though no Sas di eon the meet Ts ad Fe vee fri: The scandal et a8 uproar ss tn tthe moet mrngng tat had pd "Novato Simp dl po-coald nt deve the US Ts. Guteunde Tag Wal St, ms ford ou Bat ew fn Orta and bam dh ow hh ints CEO. He inmedny snk the fred en hee anyway we can woe JM?” Merch suey mathe Fras ton monsynaer and own as ings ea in ads heated dete i, pining ct ha J ered the mater 0 hi nape Bt pute ust a al “ole the scandal Mle, be ptr hs a i og Meithrin Salomon, ek upto Mfr al et ‘oe and al i habe sl frp he i a ast elore the Aria Gro a thn chet a ane, Ia 0 nent, Merwe toner he mafered for being Irony ss “Vw tay sy. inespecine penn he ber mtd Baines Wek" The fal truth was ore iter JM wa ie pal de—chen imply [Nimed--dep pion, ving de no won, This pinta tall of tg mae mexcn more eet, Lon erm Cp taser mgt Means within he Ara Grp, rure Ine HSL beste ead band and Ronn Rep TALS tie mts thn ay de nd compar, fe mere trey on extended oly. Derck Maughan, the ne CEO, a tus sured haa Ling hse to M-remaime, JMG was ive hie potential el Sare eno year ltr, when Mes ‘eter ened egal se ere tbe Move ala Hi and and Rownl, now the fends sf Arbivage and the verent desk, respecte, bbe or | AL eur co CEO. ‘Maughan urease, om sat to fr thin eo sath Sra nts baller nk, with Aira See depart Hiram, wa dead opps on ou, Inceninay sere hit in Ls abn He waned Saran {fie inst baker nd reench aru Arerage. Mes Sts, he made tearcaieopic he ope and el hd Iy'Stco milion, Mo ree that saat wo hve call st Hila ws js warming oe he eal epost that Sclomon double ix comment cane Hiram Blvd trade wo devout he cul ake ps 36 note wade could He Sit he marker ws ie a Sky ot shapes onl sping back Iwo ad tht nly oe ha Be ve ered Fermagn amet th Kit hah wa ora pub Ba [aprameconaton hs on ites ced ou or moe ee Stag acs fo i develop eke ‘Donfag up was toa mh, management et Hibnd esp the rae he ha. Exel sae prof et emnded S Iomoe's manages tht whic Hiibamnd war cit ras de ptm egw much extra Hage Arbre el fe il SarSalamony capa! whesyer as dow, The excctvs sould fever ape on at how much epi Arba ws 94 oh much ek rade ae, mars om wh the mais Hi re taRAW ROMUNT PETALNG JAC PINJAMAN |ean tured ihm the Sink dane mn short, how machi sos nce back--couldArhrage patel oe? fr ape to ke him wih the os the was no way Meine onl sete for ach 2 usted homeconing Te Mover scandal had ee ny pe that it atthe tp of sn, at hod son the ai impenetrable ‘chaps hedge far, and he proce trad the Arbitrage Group he hed ving sere HEDGE FUND ahd te Ad there mee pen of ich people sa. Thanks in ae pct tothe sock ret bor fort onl around he ‘wok counted themele sv dla lose meh f S17 Silos inant For thse Icky 6 lo, ae, nesting eles nds had a pci allaAs fara sis Iw concer there 90 sch thing 2 2 Pethap he ne. Une mata ands, te more como ce {Bee porters eran Wl Sry sade hey me pte and ley omega meinen por the ic, Ty nl ‘roster wih te Sere sed Exaner Comision though ne ‘mit eke nil ing ner Wishing agen he Com tmaty Fue Tading Comes, For dh mos part they Keep ge fon a fet sample ay al ofthe meen specs of mvemert Hoa, sch 2 opm, drat, shot bly ‘erly high eeap, no forth Tr rtm fr such eke ft ii ase let Sow invents nnd, hey operate Ue private cb By le fads ca sen op 0 ethan nce vers, pope OF Stratos cach woth a at $1 rlo, or upc ive handed in ‘esr suming that each as porto of at st $5 milion. The mp kgs hf nd pn nly 2 small ro Until scent hele fond manages were compete uno at Inthe 1980 and "90m afew lange operators ped moor, et ombiy the cme cameneyapeuitr George Sino. In 192 Stow’ Quant Fun tecare elated for “Ising” the Bak i England King vo elt pound (nich be hd tl iG so aborts thar etd in 381 blo poi ew Year ater Sos was Bamed—perhis uastialy—for forcing {hep delsatosi Souther Asin rence. Thanks 0 Sore an few ther igh pile mana sch Jan Roem and Michal Seinbar, hedge fund operator ace ana of dar ‘ag hacaner capa fring mush Stenharde aged hate an i flows were ane the fe remain sons rm “pealin: The populares sshboctling rk kes who ageued asized pros ose horedons les the sp Websters College Dicomery afin hee fo tne that ne hid spesunive meh” Dest the hava mags, west mt ind at tr tarsi ht tir apes The tm“ 3 Iegualon dered fom he expen a dae’ et” ei tol th onstey of uo aspect by Reig he er ‘She Ths ne ene rm thon hc an bee sys haundary oi apd won we by ShaheeareEago! hd i withthe mane No oe al thug apy the treo a Stsneot fund nt Aled Winslow fey theta pedo Merit omaniae «pri i 94s Toh uch pare ships had Kong bon in xian, nes an Assam Forte Sees the fit a alan, hed ori. eg. ‘hari ocks woul! fl ring ener marke a kone ded stl sr. Like meiner he bough wicks fe dened to Be then res pr ws aks schmitt metbe>tht mone be maker cher op {down mn ny deat al ol ones pre nd dees, Shc other hall His et tr ould dpe ol aby 0 ot the relate bes and wor, “Ths is contin peach Hk to make es bat i oe les hich apes ote nero the wen chown ‘hedaring of Soon not mde hee fs on of he seh deat, tey would make ath a ne than ital ook fast ld hee mn ben the stage sf "Ara tne when Amery compared inet ees 3 sin uthey ene bal searing bre pros thee se Fane ‘hough diy ended 3 snowy cach, for they tad semi founda rout ices whe cecunentng he wea fk: Pople a barbed of etn Bt thr tel fd pe who smmredin he Hangs devotee hele fied dented 3 erin wats, a clas among, WallStresses and ait, When the mol wa ning es sme what coll be mre ili tha demure Sr cor Sethe mame of «young, sophia de fond manger wh “iscrciy areal nl sunptsuny, was handing es nares? edge fans cme symbol of terest he bs Parson ich th pines es ha dg and anaes charged end thes alr for wh cul er aay witch yay fos np he ‘scene? Not oly dd hee fd mans pet 9 [ershare of hi nso profi thy gialy cae spc For such ens the umber of ge fds he Ud Stes aloe in 19s, when the SEC wot king cold fin ay {ry them Byte iyo thre mere perhaps 00 (moo Ke he exact number spread among many ssi hy and amet ‘ope Mont wee sala ws hey bd perhaps Seon ‘Sal compared with $3 ion ney ral fn: How {Ser investor wee hungry for mr They wre ering a as ‘veto pli vail hat wan rh kl and safe tte kes nesting tle but thet cee mo te dest ey He ‘SarerThis chs the sort of ged ete hal a ruling Alf fons Mevincther envisioned shat Lange Capel Snape wold ome le val aes a te markers Thu Long Term wi! buy sre Bon ad sll me thew ber on spend cen ps of be ther Soden or ena Fr rani ware say ihe "han te Germany, meaning tht ays nh ere cape tn Ga ‘adr wth sve aly a shed Geray nl isa th dierent arome Tis eles fi wee Se bonds ae an fal aye sped ont ‘ove ae mucha th fon tems Ae with fan fr, Lo ‘Term woul thoy be unllete #mackt rote flew ven they cnt ot here wat one sigan ile: Merete lnm rm the very ant that Long Te wal ever cal ewe they tne reer more The we nse pat Longer ‘sey cue te pap rnc he bonds teed By a those intended sell were, mo fe, mouse To ae de ene positon ach ny spreads Lang Term woul ate ily $prarctoyoe who has wnt x playground. Js asa se Sle shi ake a ack grester ee than he could ot is ‘un fanclleveage mules your tenga, Your {alot ave borrowed as well aon your en money. OH cone, Yow poet soln alse maid, Hf some eo Lag Te “Soy ee ails lors wo ein rover and acre mee {ky ded hey mig he eset a evens hat Sly ed ome. Ey ints, Mester pil cll oo Di Tally, china of Merl ech Sill asus about the nf ash on hae from the Mower fae LAL metly asl, “Aw dae tun!” Tally sai ews Tally pt swe toh wth he Mel Lh pole wh raved opt rhe fy snd sly theeateg Mer apc to take he spent of aning ap 181s degn was staging ambos He wanted thing les ham to olathe Ara Geo ith soal eack ad a iy ake hap pnts, br wt he ching Salamon i ions i capaah cei ine, informatn network, abd ‘hon empyes Hising de so mach Salomon, he 35 Ne tceaboor hing bene ta ee ders lo and ge Sind pap By resting someting te "And Meher wae rae coll sm, S25 bilo, The type fand sar th perhaps pet m8 ach) Indeed, ver Tings Long-term sta, fr wld be cotati Fees shan average, Ms hs pre wl rakes erent tbe prt ination to 4 seanly prot charge one {Mor fund tok nl pcet of ti and percent om asses) Seth foor IMG ft, woe teal to susan 2 lll operat bat the only pit othe freaching nature i hasan. ‘Morenci funded eat esos comm for at eas thee ears an alla unert chap inte de fn wos The Tickop made sess fle makes rms ain, Lone teal ve a cushion of tly long erm atl twos be the nk coal ell depo, “Came hack onto” Sil‘king inverse show enormous apa since JM. it Tse formal tack sed to show dh, While twas tow clay thar Arbitrage had acouated fr sto aero ents. the gaps profes hadnt Ree dco Even in Senos eho ha ailing of aha Aire bad eared a no soem et had crm t. Temas nd the mod. ‘el ha seo ans out inssing wy enwethe sae sere Bad een atone y the the More fa ‘eter pan chr 2 arp ring ney, | MES od ‘eam began tpl en Salman. Bee Rosen et a fos. Vicor Hagin he aia Sephadex be ga thm on Salomon» trang Door the he Bre he ew ah (reg Hain gate Abou JM. sl ck Fond, wh was fmbivaene in the feof Stone's desperate lens tate ay Meriter aso haching pla with ote of hist ear He il fl» some lowly to hs former cle aa he ch ingly ter the Job aonexctnecharman to Geum, Si lama alle chieon the condition that Catan ive ap a serious igh tat he ws waging with Son krack py. Tous ovroked, Caeeund hal played» yell i he Ar rage Group suce: be a e ther om the rere. ‘nal tends eo merach, Bar wes ot he A Can Tem [IM nd fave osesran sm In any case JM, weated more ace han Ganfeund or eves his ‘ald bot kre young stage sed lve. bee an edie—vomching ts fis fk plane th sr He ha ors i oun to shone them Sh nt ah a nd trae but ae raner expert ah "ie wo toto rca unknown aaa fesse he wa torabe Sz ho. Thi ime, Merivcicr wot fo the sry op of ‘an cndeed2 poi by many in Bs el ha aed 5 tal peers of Wall ier waders nc Ee Ros the fs, Resend had persuaded Mer ce coat Group, More impetat Merton's wa name that woul try fonen dors neni i Arc bot al Europe ad As ‘Mean wae the sm of pment Calabar soi ccs, Robt K, Maton, who had site eka of xen Ti Shula hs son an bor, Merton ere coed the a the Sl fling pepheco peomenon, be sets hat ws te by depo wo rade stan on 3 Bank ot of ao ‘itor is samy prop sration. The youner Menon, ‘the emp in Heston lon, easide New rk Cin. Jw hack for vag psec spponhes to whatever Be ate A devon tschaland cars stanly erodes the hing sera players and the the cope seco italy ‘Sea Amen suis Lae, whe he payed per, he woul Stir aul coma pups a how off opponents hei wvcmute the em tater se he was ead the Terso of mh a ae wer would iy tat be looked or der a around Whi he wns a areal Cal Tsk anethe inest imes ing bss Mertn en wet oa where a 630 4 ‘ho the New York mark etd, to pend fe hours a sr waning the mare, Povey, he wsfered 0 MIT ttanform fiance mathematical epi. Mere, working Unde the wan ft fae Paul Salon, lth esta tne ne fl Up wn hen conta omar “rch how abs kerf theoy sould Toko a5 pointe, Meron mde Newoman le. modeling pees xen of nema ny moment He cel is "cmansous Time nae” ens Sma a eres eis wh she Fexhovnod Suite Genin, would eloere “Most everthing {he in fnanvs has hse fourote om what Mam dtm the tao Hi mmf a lare notes Brame a Kes inthe eniy te Meron tacked» pn tae ad Ben a Gay solved by too other scoot, Frc Black sd SEO 8. ‘Shien dering forma or he "set pre of eck ‘Grasping the imate elation wen oi a ee wen Stak Merton speed he yu wt egal mathemati Tharsh Then be gases wat to publah antl ae be pes he thus the mela would evr be Keown as the Back ‘Choke mde ow pole would hate cra: gen that no ative tink for opine ent Br seine 2 mor before the rl appre, Chia Board Ops Fachnge ad ghtof ck options for raking. So, Teas trons te thing The Wall Set Joma, "Now you can fl te Bk Sch value inguin” Tw thet gi sumed ating heen sents ty hd ks nl fonds, A opponed acl secure, drvates were gy tacts tht dred (ee the name) thar var fe sa, rio ters For ata the ae fsck epton the tice phase ask ata speci pie and within cena ine feted, rare with the pao the weying shares ec amped athe oppor eT Cail be sane it seed chine 0 sown hi hos ee el or ‘hota, nt frm, Ths ha lea bs proved he wor ‘of enogagen, cme sipped excl by Teal Baka aad Tray ed hy conn dapat hvewor who fought ty ies of earned mpgs Pl ar financial trny tha povided cal to makes ja 3 ‘ne hd The hank othe corer ore fom deposors aed (en lal resides pd snes: matched thy ‘lowneith habe sempre nm tiny spend By char Intorrowers a sgly heres ate ha pao poston ‘Story, Longer Capel wld heron by alin oe oy 1 bods snd le! by pain anthers fonds that ‘eval sin deman and that hrfre ed ssi evol= providing niyo mares Ard wha ds Bak ot ohn ofl in rade em Unfortunate Maton was fie insight: He was ton sro mind, abd he was hay with cass at Harta a the summer a 993, JA erated 2 cond adem sar MYON Shot Though spaed se lee of 3 enorme y ober ex demi Schlas was heer known on Wall Set, chan to ee Tk She formals cols ha slo wrk a Salamon 0 be ton, war hse tothe Minter gu. Atl with af the as Tei ms infamy i sa oe othe shore of Nobe nile, LongTem hl the equalene of Mice Forday and ‘Muhsmmad Alvon the sme tam Th was msi ae ery hh entre,” saa ey manages what nested Inebend Inthe fil of 1995, Mere Lynch Inaba a madcap die 1 scutes Bsc cen wee fred yimousine to Mee Shown a penton the fend, som go stey andthe re {ured other imo Then, Merl and trou group of pares {ok tho show om te ods king ps Boston, Pade Talley Avant Chas Se Lau, Civinas, Mado Kamer Cay Dsl Dome, Lan Angele, Amsterdam, Lo Mai Pay Brn, Zunch, Rome, Sp Palo, Boenos hie Tokyo ong Kang, Abo Day and Sash Arta Lng Ten st 3 “Thea show tated dy. way ses Dut veered, asi afd chr ny hing be sd wou ray the rug see oop all waned oar]. bu TM. tee el” Mews Dae Moyer ripe The undertned Roeneld wast ow keys he rack fe inversely commane. Grog Hawi, 2 former ppl of Merion waste worl Grok lees dein aera Ieee porns dd how how olla sors ey sone ie tanh profess Ere he fas name ake pests nl the Sims Meron lil nests had any umber esos 0 by Seay, Many wre pt ff by FL aligns to Jes bis ‘amen staees, Sme weve keel bythe prosper ser ich JM. was cavalo dln, lnstone sich 35 the Sock high fee: Longer enti pemae seed need, eipe Sil wo the consuaots wh ave ists ad whe decide thee of mney pet veeMesivetie, who was contol, angling trae Long Terms esc, moro Othe fr seak dame wh Ba, owing ‘Saet Baar nce, thes weld ss Te oil ilo was Tar etl etre, ncn a petty ling wre ‘Refi by she county sche inves LM, apposed Jon Corin, wha ha longer oi at Sinn ae he seo trying bi al ena Golan Sih Corned Bel the prope of Gra’ becoming i inven o petaps i thing Meriwether’ ewe nd aoe Uma l thee Union Bak of Swtelnd tok a long lk ut sed [Nor wining tee big fants hut, Des hs bavuas FAL was tors abour feng ttt ofthe Toop at Sion He badly ‘teed an inna are Turning ness to adnate LM. ext ped hana of forge Ran oe Langer prt te the fond a inernaomal gh. Tah parse—J.t dake th sea tnveston”—moul eve Stoo malon nd hare sie dpe aot tele marker thoy at eas, Langer woul fecponste The pan was pore Mente arerag pretest by ll ingthom "stg." Mert ved he see "hers tha he od itn eltnshg oul be vero, ‘opered pa cn eck, wth JM epee courting oes ‘ks whe Meal worked on erg cle Merril nosed he ain forward by dengan igeions sytem of feeders hen Leger 0 ct fan ‘eon every magna deal ora On er fo trary US. ven aut for tae sts th Sr [psnese wh wanted hp Resin yr il ante ‘pein int, whch sok vet on shapes hat wet ed exchange seer gee any aig om the rah Sk change The ers id’ hep the ane: hey were paper cus hat hanced he mony os eta fan, kaon s Lang Term Capital aoe LTC), 4 Cayman Inds prt. For al racial rons Long-Term Capa onli wus the fd wa he "yh would hay andl bods on hkl het The vee tha non te fan was Lang Tem Capital Managnent (ETC + ‘ahr prmerp owned by FM hs pars hd me hat spouses. Though soch a compisaedcnparzton might have si ‘Mode aher wan welcome th patnor who ewed hi a Sy tosraure compen tras tone ofthe vonage ee her fener yt of cours the arn wee ene ether {he Cans or Delaware bit ofien a Geena, Connect tnd London. “The prs ts ck ja they stan he marking. Tey sno ath fi off yer, Homa Bel porter 8 Spon ‘Those & Bale en Royekeld excel amped wp a ad “Tom this! Do yo se wht Salmo "He thee dw pice of paper Salons earings sateen The bak had Fly iSded to boak ou the caning fom Aria, so LongTer ll won pv pater pr cr. Reing wen the ins tw cera J rou ad be apna fr ot of Sclomons preven pote than $00 milion 3 year dig, I ef years te fi Hwee the ot emg enaadevestore And dope Mess leading, he pare Irn far ow cid aor hs wate. ng Tem even Fred ge example of ws so postal metre ad lie es the parr were peoponng, Band atrage wane wy Neston ae al. dun Michel he chansoking Mec nce wh ora the finding was desperate for]. ope ew eM fein nth Mint Moulin eve Seo he Bk ean salings ested every de kes ie secret, Wh sh funded en Mice col’ ven el he on to i comes ‘Anh Mahl used that Mere bcome ate paren ‘sil Romana, who new exp ane for Mee wan fed He gre to inet Mews fr, abu S15 lin, bat Fahd at puting in more Arne pat dig the rad so, grup incl Schoo, Hasekin, and some Merl people tok srcing tp to Ind pot t wie Come iran can. They ae es rated ee tard oaks fw Lange il mae ‘inl cyen in lately cet markets Sade, Andrew Chow {chee thy ear dervatneste ted nt “Tee et ‘har any porate thre ny you cn cath Kind of money i Trenuy ies Clow, whos ace redesie of merely a mse in face, see tt all ed by the {ame Rack Scholes iovent, Frou, Sco sed foward Ietheackd cham ad," the reson of Fh Ihe yon me cn The Comaco peope gt tla the meeting kl bay. Merl demanded hat Sle apologize. Hawkins hws ros ees ig bier ing ‘choke mara nar racic emperanal ba extrovert He ‘ala val meaphor so pc the fond. Lang Ter he cnn, trnld be acing ny pend cach han es I ere vacuoming up acl ha oer cet ce He wo hc ick sera em the skys he apok 9 ies Frumbip never re. Enea when cme ote ands often cane ‘en Sols oul hy ws through the mat sing mt of hie props esting ike habe sede, “They wed Th wn of Ota deni, Scholes was an uni scholae Ack eotepcnerl be ad i rote bad poten ved Inaaring of fuses emturen ach 3 publahing 2nd eng stn ‘hc Ale alge, fn 1962 the ress Shs BH a Suet keowing net to nating about compet The ty bad awakened che computers prea wa promo Ing date hed venarch,n paroles elon wk market pce, computer work was wo ntl hat the rae ak ao Sey rae 4d take op the sad of mares mat Tit happen Scholes a nde cadena eccomer sve feent Sir sch Ege Fama and Meron H. Nile Se develoing wht wold cue the ena les on mer fe ance te Een rer Hypothss The rem of the hypothe ‘Soir smock pce are alee "gh thee, ‘dine he markets frre det, which i, must Be" ‘dm For ce be ih of orth cole wha he mane tec atonal nd wl neff the ype sons that eery tain foe and eokerage fie sean she work telecon hem des pest p50 of al cll Lamy Hirani, who meer pay re never By {Es thon any sey Sort” Ascning e Uitte Nidhi ‘ho sul wih Sie Chiago ad would ater How up an Incsmen fy fs un, Scholes was pr of "Rago Walk {sa Nowra" one the dies who mtd eee any Senge at arhetscoukt ve Swarthy am ob, Scholes ome iSelect dePak ret the uery nd climes howsng pie i he aren were Stpned feb rs pana ye that weet, See shot EL peonle ould hay all he hoes nom, Despite hs ee ‘Cita oer ls tht cou bet he Ine Te san he pf iyo socks ad Dore fn his ining enpose When hearer preted he a oD Jie banor france to and Bog forced ol aa hea ths Event vac coer het te a Ling Te Fsner mou ar he io 3 ey kane ‘While Meson asthe coma beri Soles Wa inne or Finding genio way of esi. He was 362 fhmcmatve as Mtn war ecrvel, tay prong oe Fraser afte the ou mnt of whch wer uly ose eee Fy be which in shod 9 ree spark WW peat teat be mae eal crit where he Set wp 9 ‘keane wag sday, And Scholes nan orem exper om {auoves fr the Une Sie sin nee He regal ses Sow into game Nv one aay pays Use" be ome Stappel daily Scholes cou ae bee tbe wee people hated ne gr ioexces tose paying aes perhaps beats Thy aid wo ihe Chia School melo ha Digs a onic rds, A La Term, Scholes was the speahend of lever Pan ha rhe pres deter ect of the ris wp Seas de tu pura pang ans He hard te noes St bre pare tended fe ne es. They Mere choel byScler ogy a ow de wre He was fe wy neni ins hing wp pt sch sig aNd —O0 soon of Mercier hh he sed wth ps ‘Wh Scholes on hod th rein campie radaly ped pstear The Fad Sangh sea pla tore neste > ‘eve dharma tr the order af $0 fen aie te Fresh thc es woul Besa ich, Moreover hoodthe pres stat ery tha ik was void hey tres that The arr geal pur the cha inks te it ing pcp ack oth pine esas on Searboat Roa st the wae cet Gch Some sons me wth pres tx may mst ih ts othe ctl aks golf hrs ‘he pros Tosked spel cone The fat was they had tnd sono money a Sloe, adam the en ‘har hey could do api. nthe ace ach nts bi two Hy thee f +993 comminens or money wee arin ‘lien tongh hf had mt yet opened ad wat wall brid “Shale The prey males ig bos when brad ly ‘hfe ry Slo a fod the, Mero and Shoes might ‘eid mrtg lar ut Hirao wa he ay who woud ILM. also offered partnerships 10 wo of is Songtime going cronies, Richard Leahy an east a Salamon ahd James Cassin slam, woul be expected tose wich Wall Sree Bkerw'oor the hndrong waders rong sas cE wl Ph was purl Aer sling shine Bi ven Seley ceric bere the Hapa er Sg o an land nthe Grea, whic had ere a the sb ‘uct "the Shc” In conta to the sgpead aebrsgrr the Broom Mice ways tains who ral IM. aways el athe, Each wat snp thea hat sees dove 10 JMU hears remit tly anced gl “one om thot of ets lave oe Waervile acy in 19940 JM, ap! the wnt sein name of sil Desi W. Mion, ice chairman of the US. ele Rese ade fd inthe Fe hierarchy to Alan Greenpay the Fs Muli too, wa former det of Meron at MIT wh Bad one Can tach a Harvard er he ad Reset ha en eae {cel er, be gave Lng Ter incomparaieavaess ena ‘ona hanks, Moroney Mig ad be he es oie mao he Mover cave, The mplstin van that Merete now had lens of fea fon Washingon. Milne Meriwether eine tena veo, way the ‘oferty of Akanan presen ad a enormous populate turer a Harvard oka e ad nuchal hice Io Eo fre ov an enero ancal ee, he wis expected be Tomes dase gu if makes cre gtk ain Aer the ‘gi wk maker ck; Malin had lp wrt 4 le bon ‘Whi Foe cpr, yng ssn une on the new deri, Inte whee the snowballing bad gathered momen. Ten Tha med the sry, where he ha ep dea ee bal turd counts Bankrup sigs a ane As relator be was hy ware that maker fram eg prec pein ma ‘hine-—petaaly and Sangeroudyovenbnee “Our Banal 9 tem fas-poced sormeuy enatne fs degned to have ett tex sith sme equeney" erm year api hp for Long Term, Wah more omicene earding bis uur fd than be sould have deemed, ln age ha pot ofthe Fels guy problems ya sfe spoken, th nls Melis dre ike banker and though to Be pial seme to Greene, Neos adh, hs forme bus Tess, wondered when Nal ed ng er hat he wi doing wth ene ue” sents hh store sothed by the adit ofthe mgctt Mallon hone Pt ‘Seve on markets nay ave beam mac fe scr nt ded Saving cal uae Long Term aml worl sso 8 rive fad vo che pts of money ingen asco ‘ong Kong Land & Development Nutontthe Goteramea o Si fore Invexnent Corporation, the Bank of Taman be Bak nly and he Kowa stein pomon fun. tna eae coup, Leng Ten ve enc th eg exchange lic of kay cenabank so mest $100 milion. Sach ete imply da mo inves in ede fd But Paramonts Campi who ove vee foe th lian agen, hou of Lng Tem nt ap “hedge fd eas an lec sexing onpnation “wth ai eputation, "aero were say we by fn Boing the Bt tind in ance ad 3 rate cena baer, ho plvbly would aepatead the obese Wal Sct pc of ying sacs {Geng The Tat war mpc, fap, Langer sie op rn Bink foro man, tn Fao crea eat Jue Bao, pate Sis bak ha pth he and al ireland, or une ranging om 0 lion 20 millon. Re Fable New Yor Carporaion, scene ogansaton tm by Ienaionl Baker Edmond Saws merely Langer ‘sede aed sede by the posliy of waning Hones the fan" Iie Sty ralhon Lon Teo snared Bunce ‘Goran, Brats gst nen bank he Une Sate, Lange got ry om a cre pomp othr celts ad ‘Mahl Ovi, the Halos Spent vested so id Pi Kg, che exeete of Nike he S'S Company and Now York wo ensue Robert Bel anes ‘woul make sack money tha xe wo ate keh {res Cayne wa ofc the willingness of] nd hs prie ernest Seo of thin Reel neers ot he Tid money in ton) Academe, whee the wel known was an ys Se Pre ined sho hr half hn Saker Hei Paragon Atos pe Tn the coporate we, PameWeber thinking would sap Long Ter for menting es ete Stee mln Dad Marr haan, aed $0 mlonpersanally. Orkes nl the Back Decker Corperation pension fond, Continental Irs of New ek tr aed by Lae aod eth, Rose Hakins ad Lesh aed by pres “hm ol ine Berga rp comgh at for yea a Tho tis eeven paren the fa ha abou bit ads an ‘leks and Stora woth of SPARC: werkt, the powetl Son Sternptns mh ford by eae and ene: Lan Terms hinbroning hit bad ered Sas ble Sh Mts ul bre ange strep neON THE RUN iy se on Lang-Trm, Having apt daring he es often pt omy to werk js las esa Aasher aver Wal St tes ng for tay wars, Bi. ‘Ewch th pote shat hon mts ‘Who price farting llr When pie a tat asi ile an ore ont abe oer pid vc This cey aged eth the cen, shat one ‘ested wseeam, Ts ads a ane journeyed apply now te sro may pic tay esl enough dy danger ‘Erow may dont etie markt the few wh ave hang tether capal alc within ben apport eck, th roses ts Merwether ws wrapping phe fontaine heating lis, who way cleaning sot hs ese atthe Fad and rsp to op Long Te, red the Fe chit 0 gen ‘espn stu Wal Sct by easing soe em intrest ets rota sh ike in fie Yur Butt the sale Fe hie ad Inn alg art the move buted Bond prs tombe than prs of coun, inet the oppose deton of Sten, bo mele tha they "shoul hve. Sebo si desperate tal 1) No Brey to om fe Lon Term eb he shi yen Teasury hn hd pang 1 pe om rece pea age mre inte reenely ae word of xecime ection thang inl fo 2 pot 078 prea Bonds rope wee Sihch wor up dcr necks in debr—were Acta Bark chal Std ce ssh eee operator, reed ho Stobart wh bad Beton Faropean bons, was sin $7 The swashbuckling Stcinhaede lost $800 milion of his invest 1 names fou dy George Soon, who asked ran ‘het ees on real crea dropped Seg lion for Tow Moree shi tml ws the Be of news. One morning inthe best these JM ve toon of ae “lansing a she adr se, JN mare, TE wane ae ae she throwing the towel” AW LNT Are, pach ie Ital be pay eho mfr dhe ei nebo eageres se, ‘hens pe pene wide cresing jee aps at es tether wa pny expe "The seal igh ltt the Bomar ha enery ee ated with a wining Spoils" he chp ator baal ee “ours "Thi wtenng ha rented fre pants ad 0 Trcrcanerens and anneal trading pata” bere heady peo. te wold haedly have owas to» Merinether that [gem would eer sich pices th seme of sone pabed reierage hee fn Bt om eke 9 hha Feed daring Lang Tem’s ery i mati, mente ang Tes ban marke he Wal tc Journal bred that “plonescemingy anal mates woe rverherating the US, Testy tend mace" Sch dpa devcopent av siden Eure ‘em nm of ading honest Ranker Tat, the allpe of Akin Cpt Managent heen hat hd pei a morte Trae andthe rasan of Meco leading preside Tendr alsa desc n US Trey ta a ge wh (Gespans mses ad deymuthe ot one’ any eas sana or apecstnin New York fo tke a fier on Japan efor ane in Arateka gate on eaal—raing the pone tht toa o on ont mou ch In tbe mnt. Pr ads hed econ se he ds tetween markct—iay,Btwcen mortage in Amr a pv torment ans in Prana eed oc Tey were ll ns epi ete Jour “You don what ‘eet wll woth reaebrng he secre might he oneate, Tithe me iver ved temic bing he es stir, Ad wen ae onan wlers were aalved inthe Save scribes bord sank The very cmce of fy dh ‘erste the no ng Terns ow yok it rehking ‘Sinha lai ie ss om nen rapa of i: Keynes lev here ant “hagas” forthe omy 9 whole The make in inking thst markers have Uy 0S dor thatboyers val lays be presen comet sl car The el el inva was leerage yu arnt tJ ‘Sot oe and cant be made to sen wich ve ircevant” Bu leverage fn may be fed vin TomTom was doy font pede wind ie i ested ich octal snd oes appt dil Uo hd we adr mp ae Thy were hey Sten soy th dco Kacey Ra indie try wee ineliges and oppetoste, Long Term red ve mr ona et ety ‘On of rade ale he same iy Tetry bd Ties oll at) are of couse, aed yee US oe cers inane he feral together ae {xh dy. ad they are come he ee Fy vest te Sor Bos any thnk ohare thn {for lnc tang, Wah ee kr cin the ods Socorro td ane rary hw hy dear fan wich ary ih su On Wal Src the ie re sin ow mao he a, Ree a he tls bond ened Ko dae hs ade t+ ‘ighednewn at orpon cn puri frslte o sha torus toa aig heh mrs kD. As ation we ie yr Lom nrc sh shi send was ml wi The Ferry 199th mas raga eld of 7.3 pee. The end woud sic mos aren Rap. wan ing ot 9 Cen tsb pst en ay Tac, Lome Terns per, (real propeced toy Foon this pon gap teatro ‘To cers On bond cheap oe bod dearer” The Ftuors edd ok why pea ext ich igh sed frente: nv cae the spend ered lm il Afr SSeUS.prncnmert mo yp at nd tha mae rere timc rear ths ey ened om stint ima gi pone Lange bee! at many ongsarc of into? The tater were wilt py prin or “then paper and LongTe partners hd fe doe th trade Salomon, happy sll They cae "ssp ade Bectine the rw Bone wally snappe together afer nly fe i loro ow ade mere iy providing” Roeneldsotd we were haying tesa shar everyone wants” Tappa aly did nor oa Ronee that soe Long Ter ene 9b ‘hele ig coin ener mart ets were neil ‘pendent one athe the way die al inde othe ‘emt Ineo, act would Be sept fling ia unten ‘came whe, ie eveyone wanted the noe, The pe ieee wan ony $58 tor cach pi of then Soc hen Ba wh ie leverage, ha ey spread ‘Sule ped Whe Hinde! Wath ach tty om mm ing Tem bh $1 aon ofthe cheaper -tcran br shosl blo of he moreexpensvecnsheran Tress TS tras tagging sum, Rig the atte paers weerkingl 1 Long Ter cap To be su they ware Hy ole sry nh of, Se they mere Binge Bod a sig ane they ‘vetting nly tart Bons mould sumer, and eed ond reads vars much ls thon onde heel o. The pce of the opead cl widen, a lot for 3 bret pein re bone Ln fonm with adeno pret, clase hit ewig. tad ed shoving nator wat ane Swen ih ly a0 ening ties bond tights Thus one hat ld pode ker re thioether arirape ey fiver Th lp po ‘el or rfc tis me have seals por any ne ero er paid forthe cept, of the rth money tat it rowed from 2 Wal Stet bik, fom Trl bunk And the wher bods the os sold shor, bain throgh aay wel "etualy he emacion ws motive, though i wa ming the simplest Lang Ter cpr. No sooner da Long Term bythe of he-sun at Tana hem some eer Wl Sarerfim, which then wired ath to Langer clara. Th lnpterm trned arn aod ned thi ash ay clara othe shat bowed On Wl Set sock shorter clara ited lane ae Laon “rope ne The bet a the tae was that Long-Term sh danscans rein eft alan The money that Lng Tem spent 9 Tipo mache the remy collect going shore lig The olla paid eget clara colle. ker words Tom ule hci $a blin rae witha ny coe ft on cath Nom norm hen you horow 2 bond om, a5; Meal lgkhr ou neo poe lee xr caller F'Snova om a Siaceiasry apd mean a et hod That Sta lal mari, cauvalent tv poor ofthe Bond ait fai cts Merl Lacks way of pons el nn The hoot veal at 48 check on how mich you can ie ot yc avd the hrc the sky would he ne ewok sie dving si hat Sd bu gue yo cou dee Foran yo wae. What more the te fet woul ean ‘aly dn have sha nes ri ed up 2 Mer hey ‘nr he ery art was Lng Tem’ pole reise wpa sichaea or shinny ee The ply srl wed ffom Meriwether wha forall his ene charm, ws Reel Seumstive a tang. gl lands, hors sad whan se Be ay ttthe. Roseland Lay roof se more congenial ad Tek pastes, were maily the aes who mer eth unk, th Hilhand ago bo ino. any case the pres wold is, Fell ty hare fan wat 0 wel ted i ned ta ial marpnand, hats oe that wold tae wih anyone that saw mates ferent, Merl Ly aes co rane tt ual Rae roamed log. So dt Golda Sich. Morgans Morgan Seancyand tsb everyone he ‘One im that fled, Paneer oily pone of Lan Ter sine, “You a ocho you were going od Baines sr hem all! Gollan Sashes Fou Caring, | NL ming, Trl Aough Loner ads col fe insanely ample a i rte numbered i the twa he fod Had po more ta en oa maj mates Se sich the Tey seta. incl haying ad sling nae scr Te othr deine eae, ido They were sly Bets hat Len Term ade th one and eer comers hat Bing om the fate fi Tape, by illo, chat # Rod Sox fan and 3 Yanks fan ager before he scion tate wl ay thee 82,200 for eer ‘ov scred by hss ea Lng Tee sonra ware fen dug, exp fa the pole were edt mone fs wks and uo tt ate han halla abe. Thee de ‘a oblate il ne pe on Long Ter lance she Arve thy “akin the formal saa fark moved ia The fd heres wold boul be te sme And Lager nc wae ale org puna tl argon dete dea {Emad hen bts wow puto op any alas whore Frequerih thongh not hays ROE the sae em 89 wp nang of can cute. Als, Ln Ten en psd Banks {olen fo longs prs than the aks ave other fad hn, Longer cul be more pan. Foes the Bak had cram clln Langer ashe coat have doe Stop seston ak ‘Th was where Merweters marking state really pai fund oon a stich tr up but 2 amin fem ofc aed hls an ane ear sometig e shat Rew Asc nancial incre” sonjred up by Meron. Afr all ws every bevel that Long Tere ha the beta upto, vrs Shy fase technology. And Bak ie se of he pres sul ou ht ass Raonne Wook yoke hate Fans PDS onl geri ca ew sper ae” om Wl Sree. Nee Ba Tisimah cadence fa gen i ch ane oft wih the maging wer nace sey publ doing the fan {ingen fare age wn coming, ce waned to mss Lome Tamme as ching te debutante om prom ight al bans waned odin “Tc ans noble atoning hye tr The Saosin! ol larly ater al ad Long Te general eed tpliash at teen of ach wang dy cis on ener Pring losers And Long-Term as sh so he isk of ai Rome alge Oni f Lon Teo nt mney ih wai Soaemeseonb say was fred damp he maj af sas ‘Stall oranda gd tarer™weuld the vale othe ‘interscalene nl woul he bs hese To munya he banks ead, sich 9 Comine and Mel Lym Tl ed Nrvetber prolly hh ed she nga hon in Loe Ter vo at Longer el sling psn as is womens wees power ats sound the wor. Aah Thad bins ith Ling Tem ght a vlsble de kno ‘lge—toall ls Bol wordsout the Hoe of mah eet coe oor pry? You tl he hat Trane Lang fem with oe poet hae. “Sp eve ‘Oks ido barf amy de tea atone tT tres eel hws Lin Term. The pres could sy exh ow bk "tf we gnc yu n faci weave gine tw ereeyone Shey ede ip ing ood. [Ona sal number of ker rae they dd ae haart very spy oes Sine the bars, to, mse doing arbarage wading, Merete ‘sewer nt os a in corpo’ Lig Te ‘red we hee nde sac a Sr Quat Fana es thn Tid he prosoary deseo ky sich oy Gan Sachs, TeSirota soy shiking ror esearch nd het services he ‘ane bec of wading foro oooun,oring#y ‘aly Btwcen Lon Teo and ene Having work ta mojo Wall Ste aM haves ment hanks were ife ith es nd co be aed not pe Ie wads fr themes Inde, tof he wer ing ie sates Thun te pection, Long Ten woul plato for ching ofa wade ih cee: br Moran wl ce ee fee the all, Even Langer Lager wa hp inthe dak fe trl fev the pares speak abot rang ray hese Though Long-Term were deciping» maces areal Hiband especialy efi ete hake peck a in rate scr omc hem allay ir He would eal dese par {hose 109 millon in Bs and of he hone ston Iman” he loyal Merl ynch Kein Dunleavy 8 Meal {ymhaktman sete Hin wo thc is, Pind But Danley was repel asta hy Hilary Sree, whch made ey spout serve the aco Ranh cond yo ke your set and per sent CFCS stra el Dane an mated New Yorker with ary rane "ie wan very wl or fae int fo she Sie. [ey would ever tk abot the este He woul ae el yo what be mane wd” “The fund parce ot i ines, choosing ah nk for pati lar series and espn dance from al ht, Chay a ‘wh Goldman Ssh, pvermmenr bo and yon swaps wih Mongn, morgage with Lehman Brother Merl yeh the fans gas contrary in dre, bar dw he i repo tne. To Be me there wan someting shred about ti ‘hideandconguce ag, for Loner id each net of es ‘ehh nk tha ste the ma pct experi Bat Langer ‘hoe ented he bot a ae sg lato Mr {am forane, was exerts tat Lng Ter an cage en de elope working allan, Bt soul get pn the fonds elie hae confidences “How sin 90m proper Hs hom witht Kaing wha tei appetite 2° wondered the he ‘frat management at major Wall Serf AS ator, {he panne tended to see every enum av 9 dite echang sth yale pln ad mine Every elo was 3 ae Teneo rate somone da bd bt pe, The a Seton slo es were ato Lone king he rng tno win hei beled row a Sa Thay were br pel none detache, co sre ds work Yo yt lay oe apie de ter ey tere vom much che se wilh Andrew Sl, who ah The bond snd cy department wn Rank Corporation, Was Stoel by th uncanny hse Oe in, Sian cal ito Haghons the hea of the Londo fe, pd flowed pin Ge toch wih FCand Ene Rowe month or ea nee The Riera ase pres dd mae 2 bent Sui had he ene fet thot be was sorinsing the same omer e's Bad Haghan. Nowa see were esos within the fm slp 1st, Hiliand, Rowen ad Hoghsoi—sdominate he es Av at Saletan, compensiton wi skew war he op th hese Sil funering mn tn hl he rows Th ro sb had we incre Lec pri sch Myon Scholes were ore fing or me mney wl ore author Ba he merce Faden esther for yar a atari heres and ved has had fame sd tare I the fr coud ane en dail i «ing person avec Miibrand Whik weir waders to Wesnical nd {ste the eat of years of wrong ses ad arto expe an way col and madden slfconfdent A ney had Stoke he wan the pre thigh eve in hemo sk {his pree war untae ty dob, Ren acd ee by ‘Stig alling set voy row Hibeand Beved 0d Sil fllowe the fom lv slleagues peed im Inet scaly they tr then wen they eee i trad He was highly atc, bu i newers were keane ‘Stal aut for nosis compel "Yo could ast te ith Lay on snd Derck Maughan of Saloon Bese Like he rhe pares bat a preter dg, Hila i everyfon a preied wromaling bt Hind onc ouside his fon pte Hs Sao colleagues od tyke tats cording ‘he earn Eran she meetin ot uf yur ome had ey ght pave it ousl Bat mney poly meat {of than any the, He fond is aso helo “hal of ring ie om fy he showed wrest Heche anya bout Filibrand cu of sl» i, 35 FX ii a ail orachen techie erp emg or Iie cls tlaonp toi nn father Ronee had = uae de ‘Ouse cn it explain NL: ln she ro, He wat sk sabato ee img He poke rans and wend sortable making ye stat” He fed alk shou x penal is eve che sd, Ar organ Lo Term.) and wie raved oa of Mankato 3.7 milo, shah ace eae in North Salen Wether Coy ec wth 15.00 une ete indo ig fo im The exate wan ae Bk thee quarters of smi om peste dre thatthe Mercer shared withthe nly gb he eerie Dina Lerman Af me the propery even me priate he Moret dal extant remodeling, forage howe wh Ste Mked ml i pate ie, 0 ter to, om “hgh ate church near home al mae eer it 10 Catholic shiner ML id peak aout his oth eer Hs se “Soto war mpc, Nor dd be ope patos At $m cigs e was my ue. He wckomed fan debts sng he partner, bat he sly hed nol he sry nd The rvs headquarters were dhe sro He of ty four ice mpl tet that an rom the opie ese tind Sound Several doen of Lng Te rowing ade of traders tnd rein wore on ee tra He where parents ad nok reese fr com cramped sound ek eer ‘ak Tded wath compares and ark screen, The ff had 3 tlaorte ichen shat had been p in by» previo t,t the artes chad at he desk Fs cit her TIM Merton, an Sole (he ler wo cane hey Sie sre ha private fis ba JM as lly othe wading Hh {insogany panko om hat lke ou eo a eth tare window the wnc eae and of speckled wth si Tate the ty lion ee ater dresed sl Sop Soe and chins. The rom buna with Wer tally But ser cnt ham ike he chao the caverns New York {Calne ors Only seasonally hd the prt oer the pst Metra ow round of ars poker. ese he Tocaay ek tng, whsh ere for paren ol Lamp Term ad ah senna om Wns srg tht ee ‘pen oats and wally anor etl on Thurday er ons when partners wold oan os spec ade Meno yim Camber, woul om a hy eephone The shred che Saco fot fm fetes, Ba he soit a ee “Sc he prs he they col meer Be at the ie i Sie One font tae pepe woreda aes woul be Feu ut bythe esc he Heaed cold os i i jo, AS Sox in Cech ve senior adr mere hot 0 ch the “de thot some sad cling hr on conor Bad Sr nh se ism was ying a sling Aves were Reve hed fk tothe pan’ rte red hea rie Facapins procs and taf fens, Leahy college hockey Fler eachangod the mana lige fue eth he employe, bo Ion the panes ated test with col Karmal They wee Tobe brine uly ne another andthe work. The ata ule and accountng ts were lawcen Sunt wn inthe ky where the pl able wa Tike cvryne dic on Wal Set, Lng Tem’ cmpoyes made sno The top sates could make 81 walla $2 Fear Thre was sue pesare he tone th se The unde burma dom weep bs ayy esc jr peo of wh Sart contey cine on of th Iss as psd, Longer on aheran and oahe ron bonds Sapped back quik Tog Tem eta 4 magical Ss tiboo— Inugal rcans it hadn't and ay capa. Assholes Ra rosa, lng en had dup isk and th evra tne imoe es many he fms ad done se sae kind fade Ba ‘tes ance ete meme of Lang Tem noe FCM (srl nai bows Teng Tem prefered wap sre ikl han wo gamble om mak ing an wc dl scold ever ty ge ke 2 high tame proce sucking op ike ae lad mui the proces hound of ines OF couse, nt eh kl ak tushy sare And ax Shar, the nd manage had ace eer remade he peal or sing erong it reser whch In face, nearly every tade touched rene to gn Linge ded aks scorer ad, baste the rst ited tape date eng thar envergece 3 peated ober suc thing Others were kw lati ale rade Itch comtrgsce was expected tnt gered The bond marker tum of 1994 seed the ed Kora hag oseol purer baled th is ow on pol memes: They Sov fig ur heya Some 1 sito page serie tevmcornrs oe fe die pc ome fr ee payers the rhc for pail payment ou think abet nnd Unger ‘kh, gute tae val ofeach oo cleo he her are asinlngto the te awh Hons py of thc ar head ‘tcl If on tenance your mores you py Hof none lump sim—that mince pane pment of prcpal. Teor, mo ferher cash gos othe eterno pou iY a tad ‘tem for upto hy sears hereto more pepe tance, he Fath wil pa The come rac for pricy ony scan 1s Aine thet tian han ily, eng (Or or POs can make one ou a good del of em 1985 when LimTem wa rng cpt Armes wos exe senior tango etarngs With merge ats dropping bel even forth fr tme sce the Var Wa, baby mes whe had acter given her morgage 2 second though were sun ‘Liou th he prospec ating he payments By hard of Salas month Gating the lowest ate became pinto pie; ‘oly twain fie Amica inane hone yeti ft Some fed wn, Nar th pris of 1 planed. Ac tay thy el ao mach Un you sted ha tee cuny ims Indes, Meruetey libra, Rowalel, Haghani and Hivkin fa sks of 10 for tepals heap fr er thee wou be amber nave selina. Bil eater had deaged a model tw pele prepayment tnd Hilane—anutging ca-hie renge ae with ace tromk harmony checked the ml gat the con fetal prepayments the [0 pee seed 50 of whack that Helin wondered "sche sting ron wah he ae, 4 th t+ ed opportanty>= The mth Kates crete tr the mod all ten, up” So La Ter our Ba ae xe al yr he rae Bo te Thar mean that Hee and fallin spe mith nee nea Potion He ie beting om net ates, Bt epee a swam fo forss rate sach othr seclason mae the ity ‘hen though they dion moon, Bene ner tes dp many vals they af esemtalyuapredtable The ports fete ws king hase eat he had Sea on ‘read nko shor the pater nerf ha, io he pce ee torte, Or wer he S the paar heey edd ie Ferty purchasing Tsar i what move in abeopo feat of ate foreating The parts cle Hering Porcular mpd ks and hedge out al he ober rk ia orange were hep lative 0 Fa app they wld Ba ser aes to ole tha parce arog hey il ing bayer orange and el every apple Ta the seigs wh eres rates scared, Longer 10s sosoo con fl, Tho t ws Tom made several un lion dlls a of Yo» sng Desc appease, Ging thee “nels” wat anything tt ean or pain of waderor fen ake pst were “lance” cough toe sae bat ule ‘eu ecm rater might he a phrase rite a ‘mots bras ner ste, Long-Term wc ie rage eng i bg 6 dsppene The fest place ok To uch comps trades wos inte sional bond sa, Makes sn Europes os well etn the Third ‘World, wer fic san Amer hey had ot oe picked clean by compatorsisdigabarasors (or pros) Font sen, Frac, and Br goverment de ad especie the f {imtem lng snd made fst pro” allied its Unt Ame, whee spends nd widened se well" The postons sre sal It Lg Term wat pring cv ankyrin Bd ‘akin the set, Thns Ek Reset ford fe “cin Io apa. arbtoging wrens on pane socks in options on (ther apron sites wou ally mere carers sa owing sce ancy mack, and efor mind coon vey Ttoer had 9 ifloren iow he sort of uncer late sth Lon Terme: Many aves: hake wre Btn hat md sued by te weaker cot ahs tal a Spi wd Sentero Garay onthe thon ha {do sme aot eld enact ater al soos Europe ang Tr did so fe a, ur the arte were rt tsk to mh on 2 Brad economic the ry, Lamers espera wis the deta: When came fore ic the ty Arenson partners were Euro beps. With ope’ hhiy relied ecm prea ting Amer, the Continent seemed open eid. A Swiss parts Hans Hot ‘sh up ee eonerenc heehee at eve indding Vor Haghson te fsexpwited London cit, Hagan prefered to fe on straps hat were coined i se coomarc whose would ewe ok ator: For stan, fe atrage tw oes ils the Be quale a Tears ne of whch was dpe Sting to an uninrabe tx treatment ‘Wher the UK, paren reese stance, Lang Term gut rad 100 malo igh Weaoey waded de eld cre of suntey api i set Ths be might go long on Germany en yee an slits Te yeur pan asl ade thet rue irmand ofthe mth lng wih Len appreiton fr laa comomi nds, Bat a est {EAD ors cmporing he son 0 Cerny with he ‘ewsaper sons of Long-Term gener ove Hagan, soe inensey pate Tepes aed up rater ener Up an! Mesto’ and Scheele” Bat nat apo 5 sre ler Whe M. preted ores rand Rowen a0 iam dy today Hagan he sll somo bran ad he tot iflaene O sasing Siwlny liane and mathemati’ IMepntey spake scout uses ound wpe, ‘thug the wo operated nly 2 amy Hapha 38 ft ror arg. maa wade, Haga hod a nite fing fo Ikram alae imple sk I de seid sn ‘hat mispeied andi teem le unde! why the dornontad ccd, Hibrand ended 0 go sigh hen, aghan, who trol tts, might gamble om the seus ecg even mre tit. Bary tite ens when Long Te Sere trad was thi tur, Reno fy nd Meret fons the swath, Beards Hagan rot wn forthe fenesThough nl acre ena et than Hii Paying poker He a yout imperuntee at ele! ml Perhaps the esl hs psa acyrou The sn ofa wey Iau amporerespoe ad an Aner he Haha gow op keenly ae of he le crscrent thar often overwbnce beta Baie pan Av a eager he had spen wo yeas in a with his thee who he deed ten he ad ced thf, At Suomen Broker Hash ha spent of tment Leno and Toyo ren te Be fa peste cal ade ap the Arta Cap mol res and had exo the often wr ifr ota ighon shun th i, Londo’ btn down eae al Src, ap etd ein Maya a ely acon di eran hota inka. encouraging he tal bar he andes sped mer Hk tad and aah worked ours bu they mere rata by the fe of Longer growing pro and Rae By the sg the foe raring he fa hago When the ation abt the ars wo! if pootaom of she rangi where Hagan woul i chills ‘vitor (Mo, he a London, woul! net pk {pthc stick td ake on all camer) Law ned ha soe hic panes Hagan frequent vied waders ame Yo ina ier Lng Tem ot bg uth May, Be arb he ese Ldn ining the sea, ar ld he ow de ney had an mad Ths would hve fen hey the fer ad ee ne Green hedges whee cae sper pe Hagan’ biggest tae wis Haha lds an fins sesame pbs Te fae thal i dtl ‘ome coupled with de sillconsierable seem of he aon Obnousy say rghed sl, people who a ee on Kal woud nae out ike had tha i The lean markt ws Farther compte cae Maly had uiky con lw and ow gps of goverment bdo of which prod Maingate teeth fixe ete Sungate a ‘omen ws forced (by an sting bond mark copay an incr ‘Stith was ihe han the ate ons wid aed res rte ah hough the mare an ser overating the ek of the povernment dealing the pret wasp om ter io Wik character der, he eon 3b Sh tgs to cnpa te soppned mopcg twas scaled fle brnwe #f Ualychd tau Lenten oumterpaics eh wal way fm tr contracted Longton coal fo Sh othe Amer rie sheptial abt al iis was 2 major wy, Theda Bl Kraser wis ees ‘trod rl th ater etc dst aye Tm snl em the rage ero the markers te ck tc Kalan goveromeat ho and sore th feed ate akan ‘ps: He ao up the Hotingate perme pape up fo {ger ecu ow hes co et ald eh tl ae ‘Sry, Hakan Blac that with srt pto, tom At Leger dg he ete potion, aang nt ter em alte detols euramce poiy (tevem ek wt # ed ais ‘Goethe nur went Bcc But th al ont a TemgTe coulda afd to esp using nce imran, an ly ot cance, Asie rl a a ay one Bast he Fam culd have bal ot cape “The ually arated hedge fund didnot were heir ry wa esd, av for Broad generates: LSeters were saturn wth aie on voli bur mate on what the fom war aul dome He covered fr hi sys by ping {nauk impersonal oes th he weve ey ovens favor by dace anything, “crac mnt op mito with Fou tar vests he declare tly ven ‘he eu dy mus thi Mi cls eked ives fo keep onde a Long Tens poe mere a tener wad plat ‘Bacon oleate the glare sul Te partie met sei lengths vo stay ot ofthe pres The ee Feputcase the hte poppe tat hal un ness Met to heey te Forall santo rk Long-Term management had eros ‘ia Unie a aks, where nependet rk managers wach oer traders, Longlerms arin nore shes Though chi dei sds thers 3 egantion, here wa isc ade; homevee iba and Hagan ch wd fight Te th eer partes wal ec fal tf sex Mtoe var ln tha pe HM had tes And thereat eee who cold have pay the role tay, there kad ben at Sloman Gat The rade ‘rth own watchdogs The paras di go to consid lengths to noeach thir vrais the alan ade Boa pre example. Haha ered servo of ele olsen oad ot ly. He Tredteata coment, le flsime-Altto Cai ferme ofan the lan Tenuy and pros a alr Lit sent. Giovanni wh a ao MFT, hth {nd forth Benen Condon ad Rome, cre ec se fama {nd gop wth lan tc, Sill we atid, Hagan ooh ‘Grad Geno, yr ater MIT grad, whe wa eo Be ‘' sbasador ly and was co in tan, "Ve wa a Seyehecn om lal” an oct noted, And of cures Lange Ser tse in coals cena Ba, wih a veel Se om the fad and Tene $5 ion oe Homers, Langer preach wat stat i db fal he lth iteligene mad mach ference yc a ‘ply that aly was “heap eine to Risa perms ada ‘ait ils, The parce sane ht alle Beau he tore we Tok ke the st, hereon they weve oreo {Steady ase "ows pa wp Jona of ance dnd sre whee someone was ppg nde” a Londom based tera Saloon Boe noted with peste tay ade gone ah hal donee yearma a vey sl do ‘rh aera other fre bad for ding sar des for yas, By heme ong Term ar eo trade, prea ely ha en ‘areca wee bidding ares han git his a Tow dil worth ors of akan bonds fo Salomon, th ‘manent Tecmo ton hat Lange i ung Back {Bn sa myth, Orer Wal Sst ery ha a fond tr 3 MIT and mos ofthe it Baks were employing sat mide tk wha mrs, wre api them the ame ope Se in radng the oe The pees had fe ng ch aes for Yours Secon th fm hadrian Dung Ft ye Rose sewed up ep ain wth ety bake ap der aie Enis wah ental om bral." Wi financing ce bleed with the partners a0 supremely conto Ter Trad on oct al ane hee sgucoing nck log fer ‘ash it “We ova om smaller depen sham ober (ronls" on ree sik "We though we col le Farther ad erage fbr ae approach dS lm, he onal pn of aw foot Gree colleton small ae fs os Cambri, Niwachatrt; won ts sr st fd en fea stake inane nd vam by rm San Flat Lom Terma had decd. Kvn wan etd ya ceil fede trem om Wal Set Tose Banks pone of {final fnanal Veo. Motes weep dn in St nt pate nena sui 1Or and POs eh in {Stor had veneer is for vas, With dole dpe odie hing fhe penetra the et hadDEAR INVESTORSis mene af ner handed yeas: Te eter wen tt he recs dn of the fndslonng at eat ro perce. o9 wel 8 15 pe Sota 20 percent ‘OF course Long Term could ger the oats by changing een assumptions dh he eter contin et ut ne or fo ifthe peice ha some set lege oa alee eo Mowe people oe hope, know tht thei stocks cam fal ha -skefo peo the ah, they old monthly Bink in ple tet Indeed, Long Tr eter frayed der ay fink Imesh the worl Laie for ment tht et ty ‘dus school showed symptoms of Conigous and potently ‘dangcroas dre, You woul! expecta waning pra some a tice wha pecans to tke Bo Tee sive fom the Pein sting that your shill a1 pene cae of etch fd cto mention presmptnos, You would water kw more thour the shou dvr ann parla aout the Kind me isn be prastie Int, Lange etre a ret esau the a phi ‘hie “mtn” Imation eo psi aks ets ‘he average ral sa he variation frm the average cance ‘ate, the eds indice ae ach that ew thirds ofthe time, you wll, tlhe 9 ora mumber that within to ‘Thee i seuble tor wav foal he chance to et ren money on alin ewe sd 9, he woul ake Of cure, you Monk always ere and so you would, one ape, roland ee pont the en? Tha ey ll the ows Yo nigh lla eps one aye von ime, ethane 2 thi, But over mon lh the chance flog infil iris mach harder sete the odin nein indeed, wry few ape of He canbe frst so previ gp orale tre sarc: We may de haf webu hae oF IBM at $86 we ica grater hance of making pro han we Bey 8 S96 js ts yur hi at ster ik eo of fads ae sik ae ‘ha mip unc Bat how mc gear We simply dnt have gh fas uy ter he ik markt lou he isk of emt ‘osc shat here ia ey deren eco share of IBM fa incon diesel and apt of ht, With Se there eyo ulate all il ke eyor-u thre acer, Rea You ow roi) the hanes fring 7 at every oer {atc tovrng confront th ok rd uncer. Thee Ti shrthe pr fash of BAF wl ll nce ceri Shou he fly dos, So many arable poll ene manapeal compete faone-can a here hat he Toray all bu overebne w ‘Sem hse toy Lag Terms liter repent Sama ep, Whi hey acd rk hase uncertain Pring umercal eso eid of fons, To JM and bi Trader money mana tae an "aft ei a sete of Toco than arson tht con he precy gue "Rui snc amg peel ft” the eer ttn mn espesene aloof yor mone in abut one moet in ead seo tote me abou oe moh nt” On ome yar fitr shold else at err 30 perce of pool te Mest omycl dl nt eset est of FS The seret of his mail foeeting wa staking mpc Juste key namie she debt won dhe pil aac om The key umber tr Long Tews the si aan, o ola ‘hc in bon pres. By ging tom of thousands of hand prices ito is SPAR compte Lng Torstar sew the barre ‘Chay thas hw mack ons suse nthe ast And Tha mabe fled enc hose of dhs mony, ad Seu inert an forces Bods an the an ofAhearn the te: Pte Rental Longs Pree open, by expen Risk ma fom sly These things ave quamfle” Neswethn, Meron, Sie, ad se ade "They were hing al he oe a he mares 9 {Beha noed Rabe Savi who worked in he wy Slo, They wer ki at en patthe 1 the ibs a 30 pat thy wre al inking bet the sorts Between the {ors ld the ros in morgage td omic tone ol? ‘Wald one tae up when he oer as owe? Uh parts sim the weigh ade ccd tt fet Bath turn aon vay ingly nd forthe ene porto, Sai si “And hyd consan fe ung them The es hatte could wo by eagting spect eve of ‘iy war anal we ow they ran he and the polio wae {fo gut they'd Boro more sang he “ol we Soltle hey'dedace ther vera, cane the fond down Rater than target aps return they eee the cha so tha they beeved) would tate doing mst Sens aoa te mich a the ck marke di. With move slay, the fat would be to high, Wh es they would Be essing cy tis sce waren, ony sabe, by he 2905 hs snpoach bad penned mnt of Wl Set Fang cm ad ‘doped the aiden Et in me eames el nage tans eine oi though thy contained the Holy Gra Act exeive af Morganton aka hw edie tk, tree rep hs volte. rod the mean” The sence of nn Wal Set wan hate cing pres pine ach Says Wal Sve fom wet ae andesite aoa he fare Meron and Scot sey inestnens any ery tring hoo Mall Src wea wate by yung lige PD who ad aed nde Mero Seles, oh hep The ue rs ha pee ‘eof of dias pyar on expense enh aa 2h aeck pecker all ha watog de wah Fiance mas ‘thoy cals sk the ssp the rer wa ‘Set meaning tht ck pies wee eer oer am heretoe a Stak pking was Fa ‘Son of tong iem'snestrs be shi redo rast Tonge cong tne ut or the mares al ot aes ‘contrty depart onthe sore wa be stn fk the ‘olin seven Conc uae peor hen by bghing oie SGlvan hd ered hi ang efor ies cho the Un ‘ery tsb ial each sho, ma sep he ‘ching of Morton an She ‘xcept amino adry seme Nora some nent ied a the pers sate the “del” ta dea he oe or warns trio But Meo and Scoles were thea posh ates Aa Scholes remarked amp, Were sr, Wee Franialechgy cing More seal Lone Term wa ‘hyve ws then of slat, ich ha spn eer Serine partners the Bes py fot Ine [OF Longer aes were ae espa spread that Slew ttle a nace ure vty ke fone that eo Long Term) rly counted. Soch eategies fd ‘lobed icy fom te Rack Scho fol he forms had binders nthe psc cin, Sat inh ad long ben ava the “ao lige numbers" Reg speting if you hie enough simples fandom event te ilBa lc Scholes makes very key ntunton: tha he voli IRM dens ely meanings nls you ean age ‘shai voy Theoret rte he vlan {sexu ke an aren, chang a, Var lee BML tea wlity of X.Y or might ose that he marke Mt [Gem wath an uring sc fate ke Ti ida a. erence etc and toa t every sp ‘Meron caren the srumpton 3s Rathr. He awa shat olay ey ay costae tat pics wl ade “eons ‘Greiner wor thou any joes Merton's mart wrest oath a welloeved nn which pce wld ded Now ke “Seam, He sm, fo tant hi the prs of share of BML Weer lon yom 8 obeys sp repos and 90 lon them ‘ck Aad taro omned both soy nimi Bring ‘Sling —hecy tc pore nan Eden fc sae of ln. shor, Merton sued pret, tree brags. Ths sm ‘on my apron veal ae wen they ave alt then tn 19 socalled pris race was mk oth be ted blight co onal inven aa shoe tens cotiwonn sing when marks al. Thse pot Src lod Yo erate amare sh that ws ter aed Buck Monday. Tard the markt wash dic ominuoe rade eo pce with he pai that oe oo Wal Sst adel nthe shar . Nein Lng Te an man ter ie) being sates The Per of soured monk withthe sam estos ition Beater ahd fad asked up phenomena! profrakor tet the socal ty le Ths gave tem ened conf {ce Tht adc eclly ce ena, cing that they wee ahmed wth the odds. Nontbeles theft thatthe gp sip ad capsid th pst i guarantee yop Ba pro ‘satel the old fal wane a ich ween ete ‘aie icq, Mons theres wore eave noe Hecate they were oly ACen hve debts apd no dou wil ttinue eo dae ach i eal snl ur mesons there Ick jt ie me uml an replay s ‘oct obvious at nerve nei dno some erp the sil nies i ll On pe led, Tone the sans fal every pb fan how Saved" all tat bel nso ol hn prt he ‘toe wih aan Bat he vs eo, Meron avn "bee maaan nyu paper of Meron ha rae tyra cade of pied dips, OF on, Mares ie cate ‘pred om in su walls eh lone the eo be phy word. As the wnsming Rene decried ‘che andi fellow Meron pws ned ane he phys Wray ing fo fora ain hat they oul "jm ance” ro, kde opWil sain wih Meron, Renee played cameo le in de selina software nach was she bg ha og he tah Wal Set. He and frank, Masa Kap, were ely Sevorao the Appel at tme when ee fare ext or aporthouph computes were cl and Rowell wasting an fate etme for invesng well fr being fot Ia ‘sok Rekha tig sess and spending pbs ‘he he every computer cnt shed Kap he col erie 2 peo that wal ao the Ape Kap idan eked they wore osreb Theo ce peer ina ny a pn cilled Mic Finance Sytem. They pubes deseo arp Frere dowel wk. Weld thomas of cp td Kipor and Rowefld ae hundred of thane of dlr on apa former dicey and ther of ance er tint a deere the next wave, He kad plas {sc yere a vied Rowe ota ih. Bat Kap ad So nate nance hg, He ws nied y i en 3 unt how socks mimicked ces tht called t MIT. Bat ser Kap took Morn fiance t,he ds ha uni: tiene was kav ene than ath dine for sels “Rind the power themed rapes elias he “lopment Corporation an came at of he fare test. own whe ha gen obeahingat Hara stad ‘ls foc Tey TROLL on two oer vente of which, 9 ‘here allt at sank om aden paged ot a ot Kopor wann' he ny ae who wander if Men model ihe te tn dy fo the el word al Stmuckon, Merron met a NI, had soubor Lon Tem wat onan. Samy he first financement 3 Nebel Pie soi that“ nde inure, eve ret analy sete and react. When ‘ene overwhelmed em te markets gape. Heat sect ‘hs jmp ot hey HM eran i= Th sey tyr tanto he Lang Term sory.” Somucio eed. “The een he "ick Scholes formal et you Know, ith esi ha the elf se cards wl be or what kind favre sings. ‘ich per yo the sump of the kg ara proce Lm ‘eed tak she fn La Te tare The bout of ads sath arn ete at fi cade in deck, and lyons a die Siew pc areas ig aM heuer, asus Sevampings They ait perk, monk, Psa hele ‘dpe ry age aa ray rte chage oy ey ly Bat inmarket we are never ta he sample compe. Th ane (Wl aes lee ne a heh he son ad ather Ser the Gea Depeson. The ae chan gan daring he Faconary 97ex ye ain the ctcwocent spe, Abr wtih of thse ee woth pce corm a we at he ent new prod wot change te toy agai To oso 3 ge ‘cmp BL ves ns yi eerie work which ser eeully conte new postin cw poles nove Frac the kao sah of which wal sem inom 0 gu Tip fanart By Ho prope eo the pn 8 asc fae age of frre ky oul ol ee a Fa Schl hes dn, onde what i ol te ora up to wel ama ha all he admiration nthe word fo the opto formal a2 mn Ba rng people money co ch Pele waiter Inthe aly yen Fam ad wren hi hs nthe pce mavensnt ofthe ei Do Joes dra erg ‘ticks aod dacoared 2 snake pater: for eer stk, thee tro many mor day of ee pice meet than would ce Ins nomad iba, Fars socks were ke 3 werd in ch ‘nt people wee are hight hu ery test pos Wa thera pat ow a dare Thre weve ox many rere rang he population of pie change iy ama om ee tage ov any sock an sre tha fe sana {kstrion ftom the mca sol eee abou once ners Sten yars tfc ssh heaton com ocr 3B once apically, amas aos det ll crs with the ele even repesing 00 many mass a sees nomthe “tik, Fam ths, which ic amdoubely dacs with ere mor ay there Long Tras fre es wel dame hat ‘italy al finances ened ie the sk that Fan a Seat “ht ‘hey ould esp {7 ew mnie afer JMU ee he Mev ps I you follow the marker even canals, you probably hve a gut ‘eng that stock or bonds ae sien espa woe tey on awl ved, The wat enn evap as Baa i the ake pled 2 percent. : the ss ofthe marke is voli a he et Be ape every ay ie thee ‘Som thvealy “uel Bo happend anya. Obit ‘Faw atts done prepare nestor hk tha er a> tr ty sl drones when sack socks mah cn Thre reton why fatal mikes ru to extremes mare stn ha on fies efter thon thee yar ‘he culpe bind te (CURVE WITH FAT TAILS: More Observations a the Ends{Gly sppeshing scent ea of rasa er ineficet mart Bors aman Afr ce od pen he ma. ete uth ip may gs be cpl ado, Se rade tary hove een lone! ad be eed os error ling ner eho shoes ac al decd wt he tomas ocd ils Trsury bonds Big Longe insepie 5 ‘Whee the man spit preset he le ns ht Fa Though be acne hs his moss epee an ea state ing to bl i seminal cater and rela contol eaten, His son for hu ss eed stent the ‘dane but ot posal lvl the cei, pple frofaner wae focal tl slot Ade Ge bi Fer Heaven 2 meas a deep aca docrion,He was etous wth hi Oe, paraarly kh sta, fat not dopo gieandhe oe he ily igoored he since nen thi uunseaht.Thah, 1 tk cfr she combo ha hres made oe Feeftinarane pean ofthe 3Hex"—ar if he were od to fh fat that, when rel popl had tr thn prod porch anc a mcrae Eve the word “spoclate™ he pt oe a ose ion tha gh apply a Meno fered “weno a coll psaes by Key hea nocking he Engh eco ad mat of er forthe i eng vii, umn dev to sp into itso, He the dace of pert ble wath makes compromise mpi Wher Kober J shila Aen coms ated get at make wre to vl of he ml of pret maker ull ee that fo Meron cere ay baal wet ‘Sting thee efit cmb: “Wena ary nations sp nine of sucha concn Siler xeon of marke ct ‘Ses susatndy he serious dou cs he waliy oimcstone of ode final eer they The rade ot anger kerw themed were np, of our" now thes? work yr” Raber ey the former member ofthe Atraze Group a alamo “Buchs the fest model pe veoh at he rs ws went th i fa You had hs mode you had the nine and in the eh 00 og hey wee x ore wert ha pu” meer ides wer mt aatomatoy. Tey debated, some tinct, for bor evey wes, abr what he des phd and ‘hse odo uot the modes emma. They mesa swe er pope for the weap Most of tanger aes wore Ko tbr hy wee not no ns Now wi the ge of ik pe ‘ely quantal. The ebm nthe math thi adorned wth “Sritde evens hat were ibe amet, "You take Sones Lewin, ho walks io Chto fie with pias. You haven ‘ta nee thats gg ton Comes a Br who had de hi ct Lng Term, ed, "Ye os apg mah eo Yow come up with 4 thie pce shane abe 1m rahe mi. sygom hans nae pty lst an Wal Swat asf matin Ganesh Bank om Merl Morgan inks Trane were crane nt Fat, the apne nny wich ade ou ly sy nth ps Een the Feel Reeve wan close inh erin, which wet bike ene ame “lesa” Reeth the roan sophie ‘ated ene they ated fakin“ marke have ey ve the pt how much wll we hc” Br wha makes dd something deren? Hin, Mark Tan ued, es edo otSach programs worked unl hey al Menon 995. Ard they El rei aren espe Tarbert hey wee eed ont They were Hk race feral days who i son hy pede wha ne wel lowe a mia day It ot when the eon calped Dasd [aaa carey sr who aces at Yl Ve at Rak “ ighboane or he wun tobe shpreckel J.P Morgan, which i died flaw doce dated October 99a the ‘ime month st Mercer tee Morea adel tht mites {il appease ran depen the may oi and shat lie “are tects estate” Nonetheless he fron and treason lor Wal St, contin ne Value ak Slog couldn idan "pease alerts" the ark ‘splat would make p for isons theawhaye," The profes and ea ike the te fom {lo inte sock mares were, eed. idepcdeny rear Ubud: What pce hey sree that Lng Tem emp {sume be patel crated frm one pee tthe net ‘meat that «dwn ment wld iy be followed by pod ‘month and ap om tho making ssid Ising sreaKs even Fes They =A lew rrr any ae ner iy Bee ely 0 be folie bys highs erin he subnoqnn ster” Meron and Shols argued Over tin hat ws ca ba esd correc tho mate. Other here woul he no pos In buying mised wc, Bur what i tore pricey cnr, fe tsk nthe sgren? That wa 2 pouty he eter de Rama eet of he parr’ logy wth ares were say geting wore lice, rere hut, woe "omnes ‘mor err fad sme hem.” With me esos Bung. fe mapied sear and wth market tes anc ate ‘somo tal ht estore won ake lesen to correc men frat. Andon mest ay they prBeBly i An ft marker [Sole oe as mo Bick Mondays and, fom day a Ise rky ane Spreads shoul hertoe coor. This bone te arte’ comfiene hat spends would rr: Inds hey won Content enh overage ich Bee any nse Teo ess uatltd, and sterng sces continue Tn fac 1995, gear ashore rth sesame lenge! tsk i he Caines pn ch wg aed auth deg capil ef Earape, more cave han Garay ant ele by ann than Fane, Aster adr sped aly er ‘ct for growth the Bod markt Rowe an opt nd egos pit ctl “Tanks aly andthe 10 mortgage ren pia, La Termin 1995 carol a atoning 59 pre Before fs a8! 43 an inventor who ad stared dy one sak sal della had ‘Mull by 7s preter ae dh panko fa aes ‘oc ead LSC enh Sono Broers a Stroping in is abso, Tie Bak hd sled wrenching ots "soa was widely ror oe up forse Son. When’ the soon?” ane ete wonder Ro Wil Stipe Nobel Pricing nema avi a Lem Tee investors cheers scene sel sah =e de fats het ak" share mata “Myron [Se ‘St Waly ur gl oo ah ke he yo th SP $00! He sik We faving ole gig that i adn rouble aig an anna $n fnew money. er spel meal aba hal oso ied a taing aed {iar He ete be fs ele sharers liga waemay Ph.Ds i sophisti financial echlog JM been haat euthan two yar ily riled to total 8.4 blo Limp Tenn ome hal ake grown, he esrday sn of Stob Fi, Than at she endo 994 maser 2h Of se ieee otal sett hota ar tho a tad borrowed ft ff than the aud rer ced aoe Ths ctu on al opal we appt 245 pect Ths role fe what Long-Term woul have eared had i Ince eng Ter eponre. Whether oy 3 bod Sp ‘vam pon, ym are xpd te sarme petal in los) And thee ff uence trades mow Sealy ceed Le Taking erative tude in acount ihn fern se py shan» pene" Te enact bor npr. The po i hase alo ts end 9 perce ren wan Sue tee remarkable ocr of leverage Senin th ge, Sharpes Ing sou apa up fen. The fund singly aed wah ke each diy, pang rng ch depen hich 8) 4 fade hed mowed in ew of working capa Lim Tem deca perv se fs uy stain hid cach ere Th ‘ll a caplet the capital that Long-Term fie ode kein he aut ce Rose sl, Eve thugh we i gt charged siete had ark man teen proce where we eased our pos werk {fal We wea thngh sr tee a Seppo we ee {2a scl sn ol the a As Long-Term’ steps ge me des he fn el om forbleaking tae one fan ons porto arabe, ots back in he yu The theory ofcourse wea that dhs i hea of many leveraged eden ellos smetaneonly was sh ine ayannurer doe no expec hit lof ches wl elas Sanco Tndeed, Longer thought of lf in ex thon tems 840 insane of fra ik, th fn peed premium fo he and feng Kia an ger ener nthe pe {te 10s, Kalan bonds ands fon Of sours the rae wih marae hat tess wef one onl wheter dhe pre tums adequate A propery aod cstly ure wal lays ake (Cer ood ena i fan ak Wa the re tha irmeres lucky? Were the emis agate, ws wii trary inexpensive iurace pais for ses homes on wo Site le ought che teal ola? And if esc of {imps bods mah in fet poly” the mB ‘imran the level of lnc could someday cel fro with ech ad dla of everge The qurion the pres Sw ave ask Pemees wt, har had they sche 0 Ike tha gy ered whe sr flash they face fer"et otal nd erage a TUG-OF-WAR \ Inc sesh may hase ents. Komansky and Co sy ane nt knoe, Br pope een te ke: Lon Ter ‘Sheds orl asad a cue as snd an vest very roth Loe ‘Rosso the Commesy Fours Trang | ovate tl ony a | Fore of wach fe “rd can ad “We det jor waning bland we knew the informatie ava Thrall Longe Sesinae rig han rt whe be he Tar ha was the whl pce ee, On the from broad eatin sah "ire espe” poner sv Apacs Ter win oly phenomenal potable 2. a thou deving aw rate The fd Sod othe pla a app toe i sy 3 fen than eve hey ethene sting erga rer Byte oF 196 tne Sry bilo on nts lank 0 9 pe ‘hvnave decors let dea Meret oneal move sets tho form Sane snl wee mtn satin do Salomon, Thy ha ony» ope oven ra he dar aay oigage sce a {tree |. Morgan mould nt hive row tat Merit ish sarod inns hah mae trated he ie trv dapcing Morgans las thoy cach ak a ‘remy had fare potency enim “ow of how hig Langer ny parla ad Bat pa: oe ‘ee he banks were ins fea puto to einute, The world of omever Longer ws ar ceri aks, Aer he bet te abrogate al Cer the fans Knew noahar he hanks were ging a do more hee fhe, ot lo ne yeas nhl mathe the hanks ere sas gy sd the ed anda ws Istie yr Wal Se ot surplus capital The hanks acomplnelehis by 2 pace Tren saree ot the ance seer raring ho ‘shoring oer to ed fs wth ser eh Sere for which he changed ee poison cry $100 of Sine reputed Be how $c mone 0 shea ake ery fas ps Pf ols peren|—s ele fresh plied isk nel Jon Ss then adn manages Ae may ae ye asks wee Daze hy the pare? ai fenatesstor hank vat po ity tas sae shold ae Ben BOR pon sw ed ‘Andrew Sin, she Son manage ae Basel bse Sit Ran, which iin in de Tete dey exploited the banks" hang fr fy pushing hems ds usines onthe mnt avenge of tern The teal an rzorthin mans cating oa tenor prof he ks expect rm saving ich beheth Bat the ake dt ds ht Longer would der them» pot a he the isos ike rated Bo pel arenes they het fs hiring chi with eet, Mal Lynch ond Sa ‘hrs weve Langer gs sar Sai ot hatin eso upto Lng Tem, And the edge and was apy este is own srs, JM guy behrened Dai Tul the Mer {pach chaman sae and esc bese futon JM even made Tally» prtc n Warr SC pl eure Goty Key ta T Tl ww co devoted is anc la the yd ha nate ren ie amen am ard fer ei the relate,” Tally eed EM. also mur pe Kemacky and Heth Alisa, who were ring in she wings then om Tally Aways comfotabe Ir hing fen, JM. tok the Merl bos to Belt facsak where he boned hss, Tp JME asked of estos ade hips do de tkig Alison nd ha iemembored he aero ee thingy sch he mame of Alls wke—jata he remembered aden ML wan aay 3 {be tem Tn sch sharrellowed sine tack “Th hgh pr of Lan sason 4 Merl ae ae thee day pal cope a Wao antral rome Sour that had bee hn mer igor Wd Nut ‘ken aended fe cach the Meal cctv exe {meh Long erm prepa thou och company frida owen way Waele ws an ching pie caved fom Fe ara gases, ace ua sie lh ig nes th the che afl eld each Sepemberwexe ho tem 2 Me fa whch penal "Weeile Unenasoal Cop sbi beri “heserbords arse, white, and orange, he ak clar Inher ‘hour he pls bed and fast saps dss they ste wan nat al a aan Fark seemed the ‘ole pede of ning ves nto the enn a a For Meme, Waerviesypuied et he ad one from cadying at Heme Hes a ied ho een 60 the competion staking wef very sh, Bu ot neg fe lla pointers hs tees. Lel by JM our anes yer Long-Term won th Wari Cap yee ae ya romping The bker to what at Long Terms compose spe The Merl team was nproned wth he ahararur eh old with mach ‘hans they tied, Dal Nap els ik mage, upp.shy sks tnd PRD. a gol hey wo ase Stephen ality who tan foegnsuceny tang a Mery tr Nyon Sch a ane af thse meskes a playfully desde. “Nive whardo yea more ofan or ba?” Scholes 1A the ann rat ro Lage an pk ‘hin ir ong would sl yo wat ge ae fw immoral sh” Grady Merl opened he apt By Toots as pring bon frp arn ery el fe Mis ra et) and propionate tea the devane ‘Br se fom plesnant wevkende sind wap cee Shar Mv ws pig ur, Lang Tem snp shaved rom the han se prs to leave anormal pb fr Shute The hrker anh suomi, ba Long Term woul hale ‘rane pty cing Merl rong expose the hk tng faa perso Mes ep ek esd wo pp te re archway one the ms est golf ween theres mad ea! rom am asses Tm pon oe Dik Leah We chore want be enforced. How shove puting om aoe fe handed millon dlls When he ep man ee, he sean ns "Yow got these ade oe ln the io” rel sakomen apt promine ter pete acs ata: inhi unig Long Tem wa th ey Penge ade wth ‘he tn and ha wading would enable Meri see Long Te ‘ar OF cure sine Mel sam oly one ie ch a the nkermason war of dab va. he aly heh Tervoen the financing a sls dks was edn Lege ftv eemse pple at Mel ew he ant ws “ope” Linge el ee to tap fen a every Tee! of the fe a ‘ils This stored th Tally the caiman,» former Broker who ‘sho pra” tht Merl had wo so mach of Long-Term Fist sen Alon, whom some derided a shaded ean cg cag up im Long Terms glamour and rel hs ndrtinge expand the rly. “Feryby was enamored wiht alle” Daley, he stem reali “Ww He Kean ane cick ~Camct! They ha te best a he ih However the Merl ectes evenly pew uneasy —not be 55 mn ya ofthe account, pana considering te {Gel once Te acing de hg igh se Since Me hint ene? ‘Alin ho was charge of Mera sis wit big oie sion Longer, aly tok JN ae, sgetng SIV hom fence for Meco makes ile money om Tene, Lik thr who ele th Lang Tem, Allon that Ube pores aneed vende ero he prof and oso i {fee des ate shan terme he neal toa, Ad AE replied spatial at Long Te Rept saecing Me tl sesame Te fm sce wally neds, een the re {t sourng hy albonces One tie tok aban a tesa Il na lan decent oma lama wis expen Whe am encatieprtses JM. foward wih“ id el dees Bar he dit ik He was scr” the Merl eecve sai “Be was ow be Iola the wor sone win, omen nr” sce expe ge lst Merl yh rd dr eam thar ene Biks reeve r thec ren ore galing, Langer ted to sel Mere on 2 ttvant at had een comcced hy Nyro Schl. The warn thee om fendi exposing Merl to Seno sk. Merl feck refined By mom he uous bl wa rowing ree er ‘i hepan oak uk ste fe alae te, hough remained te of Ling Tr ge anes, ‘Mclain to cee Log Tr rads ut Lng ere fu aun ot hese ro ea es here FN a frend, Vincent Masane whe hod tomers Bon wth Salar ning rors perfor many wl lnc uch sor Ke ing and serting aden Thong lrg aly 2 Wane Bo feo hoped to tre of Longer aig snes Bea ae lee mney so sen of he pats w they cul re het ‘sna extent he Rk However, Long Term sl i ‘Seeed tht Bear cal pore pshed around or ne thing, Bae ced do mush ancing om Long Termsal ohn has. The set ey Bear ha one tre down Nor coq fom a Ponce of Lecbrentm ho was exg 0 trae fig cote nd was abou owen the ls for 4 eae fond “Our econ was ery lear” one execute riled. "WE don do bess without inal margins Whats mor, Bee teas wry aoa raking oo mac of ep Longer. The longterm hh mg do hone fade i dy Bea fetased ea hank dingy of Long Te ast a ping tnd estan man Long Te ball and rom cour pain rod the wor ‘Wahoutleving bok, Long-Term would not have be ae cooperate ot wth ying cstomary Bey ot So Morse prime broker pally ashe tw stop ce ‘ei nore, nd fic o ge new ering brn la These, Lon Tem wa dependent Be Sear 0 {rene enon thane ay the or Afr 9 al Ser ker She Hear wa an encomentonal ace. Ab Greeters eat ‘Spenpenarianchaman dsp the breast aio he Mow ineand she reily He isto thera Bor and mower Ie phone with rato He nan taou or orig employ esas wate pape lie Grceert pate, aes Case the ‘het cx, had made hic nme by daring wo make a macht ‘New York Ciy hod othe ut ron hen yun FM. had en pursuing inlet. Under Greg a ye Timing manager, Bear ws arms pragma an tle Tes fwd on fm fame Th we Ling Tem Tsonga Long Tem ws pet ff the rou Askin Cait shea and haha are cruhinglones nthe morgage mae esha lle ater Berhad ws manga. The easton thar Hee bo lth os a Ben pang 8 Long Tem ener ‘cl ge che rer fen oat for ache ‘Wit Lag Term wand way contac ro Bea that ‘elcome to les og Termes eve fhe od “counted serous probleme, Bo he bake ws word OW ‘Genser Bear mined tocar fd ow ocala se i eal be forced so make pod on eleventh or exertion aden Should te fd evenly cll In sh, Lon Tem nd Hee ereeac wore shout the he aby odo harm aval, Beat was wig pre ahs ig fr Lon em se Tong 3 he Dede fn ep Sb ot cl at Ret Th ths wan acepabie wo Long Ter the pres aed fo Ser estore the ie chi and with means pe ‘Ntwerthcy were mses pet Long Temi ee darn {ros Hira hang tad repo the Akin dace havin Tem eve cub, Bear wd be al fre Un, perp resale pre Bear wild ab Be 3 pon tage Long ers poston, prea sein a wave of ‘cig Thi Hien waned onal dwn Longer ie ur lable fr any anes sacha breaching Lng Tem co feenas, Taya ira ge, he el Michal Al seo extn at Bose troy fico and tf pram oh Sul otto hase rie The miome re Renn who abn {ook pat in the ol seed ale oe Bear pot ew, wand cok The discussions were Tes gl cst whch Hind acer ean otf argue. The paren negate ‘noun ration, ng was ie Hand ws a Ihe mchscugh af lain ogee cto ht Shear osm arcmen wih er as psi smn and JM ual ete dhe me Js ae Lange ma “Sel cclaorahip wth Mero vcr aig westendy, J and Ice, Vinny Sano sit a ong Term fern Grech or sc cayacs Park Avnuc arm. The way ery Ronen woh Ive Cay in aches bu when JM woul ie up “J. ou a fu do someting sour he cerns paren” Cyne WA! dey hance aay Bese Lange wa ho preing Chane Mahara, The fn seemed swam so des alo Wl St i ny andthe ares ere Irken routs were god Chane had decal to fecme 2 counter Sn rag sng that Ln Tem wa 00 mew. Bu when Fert in syne the ep wan warm JL ad 3 cmtat a‘Ghae,ow: Dad lg th oly head of lobed, wh ha {ded an cents Wal Sr. The sneered lpn Plug Ironunced “Png had adel JM. dig the Mane ce ‘uh he had cic te Blears Slam Brae 0 rane for emergent. Now 99, Mag agreed ance {ate hot oats thik market. Chase hacked Long Term Yeldvure taderagsin, + standard sonata ote Heme faders reper Lang Term depend Hoe ane y se (Ghne+3 mlon nestnent nthe and ut what Long-Term really wate was 4 para Ban that ‘wold ee cnh demand when psi eds oe erg ‘ens aon Inthe parr cress nine with Nr, Bea, yu Chase they eed ong em hat wold ap pont hm srl sn Son a Mag we patti a Sane! fora $500 milion revolg an Wom lare te of Binsin wher words sandby fay tht Long-term soo ap ide nd by ageing ofan ee ever wh he funds ingen pup any collar Then wth ch ever ns posket, Log Te ned p he teat on Chase. Vaso ofthe partners ga ph hank sl hid wg, bur sce rm Merl. A warrant an option the pres wt a warrant on th wn fond to a8 aera Fronts ty had inl al pol see nthe fr, ‘epurer,eapesallyHiiband were ho for mone eon They “tte oe curs nd po hough thy bt He rs fo 2 Seaigapreemen that wo protec ha in he ‘linet oveing hein cpa hey scone tt omar te ontly a fal The errant woul ave espn Chaser untae ks Une Sols pla, he pares wl pay the an aoa 5 men Jevepteor tke depending on ests In en Chase woul pov the pret whatever they would ave earned os S300 alin 1 hae penal lily end soma skyrocket In he 13 Chas oul dg isk by buying sme of th fod for lt Teh val of th fad oe, Chae wold poo Tr nha he fa According. opin sory. which Mer tum and Schoen had ofcourse dvi othe vale ofthe nd de Crear Chane would oe eof Boge In other words Ung erm fl Chae wo wane to rly se net hai ‘ed dn she th wold nt bes cy base Long Temas ese cist Nn the prt polly tse 0 dickne he Pas Sonat hy Lange's arpance: the pares waned Chase Shou il ofthe so dh doo el ehou ing ba thes wer.“ he hll ae we spon o hed i" Pl ‘ron The hea of Chane edge nd practice was shepial ar Lang Tem wold nt upon the warn es ch eth tax sweeney lig Hib tesa the paren. Soul clay pot onthe wan a apa ai and er ‘he une he warrant expe. Th stent mae Ses est tr-maopion ha woul leverage he pane tree a ee prose Gel Sam Tonge pth the warrant cheme all ove the banks JM. cen tk it Wale hip, Chane ch execute Hira tally teed wo dnpatch Scene dhe bank ls on opto Pring, bur lg woman bates wie Ey wh CE mene the formula, "Vo can eenatltale these Grek ‘cn Mag eed ering tthe sh, et i amma the opt ears agi “One Cie word ht oi Be ere Shade "hot huis lg in? The pansy wars ot arog in thr miners een ts ees wa te deepal ‘ris iearopana of ppl ns ba Boo 0 Harvard and SAT Fork who ely bleed shar hey wee mon nega han Ese yo know why we make ss much mney?” Gang Hing nc ase an fiend fm salon, Is fea wee sare ‘Onc the Hawk ven el etre scenes wie aor le lg ee gti spss. "Yo flo shi” se alyand paren wer binge ote. hey ad they tak a fe sh ling the ney ithe fan bes "hr year drew tcl he pares cllties a sabe he fon Sc bilo, nine ames hernia $1 mon ese, Ieatan nee fron have mae os i e-d al tram bad seas! The pare? nervy don bee redeing "hi ft ha wld hem te the aks th serch eri Unlike coorate tanh lg ft by ctl ps thee, Hibeand, Rowe an the se vey tthe abe When thy need spent mat they py 1 the andar of Wl rc uh mt he pares wore ret lv pers and hy frome om neta They Kidd he fespnding Hawks fr Bing odors te cour heme Srtog, gc he tak bere wins bet hoa eed, When Hawk see thy bay cnsey Ry the suki Beat of Bates ha Rad sh and Shinncxk New York Send Cypres inl fon Rove wh ed spn srnteront home is Wench le 3 psn for wine, Head & photgraphie memory for tages and she hn ena fone clr dy on Fam fo a ile os ten denon the rer retin cel went ting whos sng of Ke cherie Clu de Vor ore cha Borpanden For Hiibeand the rncy mean aed scl. He a ie are, Son pl ty in Ginenwch and won oper $4 ‘han showand gue ane But cn sich indies a tril ake nthe arn’ Rank aso The po tron} ay have bes ceil thine fen theese {Cem far beyond any cncraleeayenod, The mney as 2 ‘soca pro ofthe speraie wang sil oe Meson and Soh aed wordy salstion tthe aden are common; aa Salon Bother: sm ‘as he nat for seating eral epson The ‘i Seamboat Read was deep, for eased Ie sua The fry Schl wow get ae way ache lade wos ply with Mula, cach aac king Ae smarter than the he Hawk, engin wouter ‘epi rented the reves deminer Hiram Even Reve {Ga whe was in charg of open deal ste unde abe premarin Meith, ho woul erly rows, "Ec ‘etofind aay semis ney ae unig he rm The arbiragers were lind tthe valor of conto that sk op sg oh roe vl nl pons oun Feasts nate et sy wee ert wl fer they ha dey aed, oii ther peo we worth They mp Moulins pe upon Ses waranty he ma Touche pres a bet el gad hase they sano iy Unon Rik of Sead hr he waranewa tars hoe, Ps UBS ha sci sued Lang Ter oe UUs ha det wns he Be 9g, ben he and fv aig off Alle ater JM and Hagan ad gone calling seis Hoping. to se UBS bon and wap trae ut UBS ted he leverage in sah aes an ae aga dln Towevee ong Term sominucd to prs the Zunch bined Bak Wiarton th ade and ada he ly wan UBS Bes [ake andragenenkne En ha oe! Sa 9 New onc your ates Hila. had ten Tay where he Thane had raed nd, whore hacen of Me srt ise Taper ha cn saad by JM a Probus wed by PMs ar we se years Tab meth rp end and aan alee Ar UBS, Tanne covered hedge fom He hep wig is tues to sve the boys Km Geen scans, Meanie he wa on hough meting changes. Lang the premier akin Strand, UBS had eptoind she cumty ain bond [anking eth Serpe Sn clr it ered some ke hanes fr the atonal army rather shan rm MIT td offered cash vie pret 2 cot of te poled wo tahoany, walt pine—to pac fie wth The compl. 1S had gun to gt ack, ring a kw of arene rade Mats Callie = dena prce of Ss ann rh Bad than toshe! execute, ave hinge ere re nde ert ato ein UBS ech at the tp, Wh th Bank eager 0 {roi epee 99, Tanna peso the sed #9 prove Lonterm a7 couneypany, The bank aby Bed 4 ation horn rade fon Mer Lim abd ve bi mah ‘Ont the edge fond Kea UBS gine acount Lng Term he bases wa ow margarypalhalopree none rade nln ane eu, Lon Tem hated the mar fn tw uy hase poten han ome quae of» promt, Ray “Galucn, UBS fet ed funy deat cok the we arginine der pe, “Ron theyre ne tore eye Competed” Goldin, 4 slvechsie fer rach puatoper wid doctorate fom Yale Unversity, cca Tannen 4 ne” Beal“ want od re TM or UBSY LTCMC des ha aly Ppa, With seve a UBS ledehe way pursing of ry tock opto ade, sn Tannen pan hink abu evant Longer caso ipa hgberman prs UBS sare ing Longer on aed propa which rented Teenebaum with & god {cod fom his Salomon ds: Myron hoe, ‘With Lon Tem showing sch exy pri UBS as etn cater faire co hve ax ha the gest mistake we Sr scoped aking new moneys the window for investor appaeniy trascbua Ide, wey Suis were paying 10 perce premio {ohn out ld enor. Rt aly 996, haowing that Taare "um was ih with boys rom Greene Bauer sed he ses sant sce hi fends ight chase, he ak nest ington was opting ery treed in URS a re He charm on iy ciger seman. The fund broke with #8 o-0 ‘nome tance ad fed Taneabour sh of the fr ora {le orally hogs US won eB accep AT the cme Ling Term we hiking of forming 2 spite fond—LTCMX, teased menting ik tae ao 9 oc. (Lan Americ The tse Sle sie LTCMU a 10 {out from under band’s conto, whch heiress ‘Shel, Wah CTCMEX in in the fy offered «pene 10 oheio Mendors « Harardodseatel ve chairman at P.M fam aa the son fa fer Cain ambassador Great Bean ‘Wh de plane psig slong Sebold belore Tate hum he pence of working oe ERCAEX ream prt of The fund would ape soe UBS make ge ncumene i she Feri th bar ates ped wi 3 mac om de fd Sor she Inthe fal Caolave, the hak shsirman nd Goldin pa call he paint in Cacench, By nom he UBS rss th ‘get seme thee to Ln Tem badd owe tht Tn erhuur might be pring ite on ln sofas We {Ste Rone Woe an ce youry” ose f them sad ML, shed tice, ie Roms a gor an” The pares tested Cables kes att os lose ath arnt ated he mcg esp on Mtn eh an Harada Haga who, tg yr Loon was ashing ivan et of FM ce no mule wn cen. When abe avr asked ako the suck tr Propeam money er thon NC fad Malin ek str hich peed he ‘Ons Comat has deo eral hank ie was sata the re; bt Tanne pent November wi moti abot the wt ‘ip pop show toh superiors The anc pth as i Ue Back Scholes mode." hey determinants the option ing formulas slay: And Long Tem had Bc excel‘Shole ader would be wing write call opon on he fn for 2 edanely small promi poring, Scholes had tered = pre ‘ur shar wa ames hes I ther wor er he ssp Tho tht Lager ca ud sera sted UBS col ok twine ayn fie Goin wan ght, “Roni we ull oe mn of hat” he rte. The del ged he Achill Black Scol the sepa ha soltiy stant Lng Te sl este skh puch ove the a. trang fo ands oth "The Pipl of LCM wl lp ae free UBS ening prowess orlio mangement rk mana tment and dame capil allocation” the sacar wrote, Frm Tanerbaun Bevel tht, he waste onl oe Ke on ‘Wal Sr who dl Bat the had ras 2 wih pat of the Lang Tem gag or ade was sl ond fecal owe he had sated ou wth Hiram, othe gt at nthe his Irie approve mjd Slsnen fen fete he Isle ur by yearend though ting had Bre ned, Se ate wacant wat geting hen fom UBS ser ers nd The nd earned 7 pre ag pee fr the grees! se thanks eo everagal spend radeon Japanese oer, nk ‘end interes ae swape andgain-alan onde. Nos when Fr bo ban to ade above Geman fn mpi cb ‘uly that aoe Bre es ifaton isk han Germany te peer ‘vey and west, bt om “To pur th umber no preteen oma nd faders Ie and rere nw he pea pb and employed item rene eed cto ae, aed ere ht Yat ‘hn McDonald’ dl sling harbor ll per the wor moe than Meal ch, Danes ern Amerie Expres, Sear Nike Lace Gilleeamsne the besc-eun companies an Bes ow rand in American basins, And hey had done ih stain ie vl. Noe ‘oe i Longer aufer 4 monthly hs of + pee To Hie ‘eration woe The fas nese aes wee Heng with From ams by Meco." = We co a the ik ead volts] Ne enugh the ae sll frend a i wed by hr ow do tne “Were sent power of deren” ‘Only Meriwether had fed though more ops a than Ri panera wan cicurepct. Ata yearend tncheon in, Costs Kaplnief .ML odraders rom Salome cM cfs eo acep compulinon He hurt teed at Ter oral ws working Perhaps ese tht he pares joy nme ikea ununlstch of Bly weather 801 endo he che, Lng Tem ake it etre shut 2 handed in umor—to ape sng the dae om which they oul ake ou money theft. People hi dh peace oul take hi mney home ome dil. Thine Laer dp ‘ton shoud rss eer want to withdew en mise, ie fat money spring no the arage bain ia rial banks and comp adam ad oso for JN ar mos sone reso Lon To os pti But wold ake ‘Wong nso be the year clo .M. ma he del prnence Lon Te's rel elected reer than expel naenenc ins mime of tpt satggen be oe. Ar Site net cunt dt ave sable the ex ‘aon ofthe Manage Cony et ths aig of he yea Th did ot sor wl. Sm pres on eng Tes eing sealer hid ated narod sch ks real pri in ce frre, Moron he fun haere abo fd ew ater mb Ml br peace that he rack would rer 6 nh "Our curee, but ncewrl inrece,jagene hatte ‘erreur for 1997 yw be ater low he 1996 ret ‘ltough scl rel aye consderaly above or Blow te statons clad potential or ss”A NOBEL PRIZE iT LONG-TeRa waned eo di or tthe sere of on ariage wt By the ae 990m st evry sosmenu at Wall inst dst ome dec ore he ae: ent hd spat abe eke, wth rade pestle Sten lok oreppertnitinn very tok aan o the Bs Cosco bans wee taching for ese nickel a Lane Term eta hey whit away the vey spc th had trv them ths Jo makers pun nace. Lange had Stsaye en dl arr, Bt now the itr ee ie ‘nner han ence No sooner did aprend ope ap than al aes Par i"Fsetone che was etc pt wm Renn Pisin. “We'd go po a ad, hut hen we lore one The opporanity would anh “Ghrserticaly ere encouraged therm expt ee retry. Ere Salon, the tops ha aay sgh fo extend thro Ha thy nnd om sap sad to morgue backed Sscrois? Had ey branch ino ink Bonde and Eoropean {Car In retnpes, sch nes a en baby spe. no ld pe eran, Bt he parm expresso thea lester) nf wowing dc ey sn eed et By ro. pas fer he high-k spline srpany, ITOMEX, hal fade Meda te Menai ad deviled Wt 1 5 siwayro cde mater ond even pg een put Prac Fom Long Terms pt of iw te rae with ese tata bsnos os hee ca. sou by end or min someone wird The prac rsae se i fred the toh semecony of makes They were ice Itrgot wihthe ts fn ere ema ‘Sanens in fn bosncnes, jd here hatel copy Lateran tas bon ws pes mal NtN intistona cou wa Long Ter acaenic pies md (Mera psctoteenedy sgn Mew nae Fe toed connate the rs Gente ws dpc Hane, bere ewok op sempre ket mor tah SSINBNL Mean. Man wos ur Lng Tr de Sine Monga sso hit he pte shoul lee Sve islets api ter sa meth 0 ‘ners ore tral cope donde Que te ‘hie such and ems wee progress Lng Term Topreched me han lL tall est een hres wen eee to foay Lag term bly cen thera Tor aces TRikedy commer mrgapers ately en fe the market forlOs and POs ich of coe we hak! by fr prominin Long Term sppete war so somaingy Large that Cramformd he somemrl mkce, which sored rm 330 bo so hina cng. ied adeso yee: cf having experience letersi, Eth fm col ind an en ising, “They cold ern he hey the pea wih er) be ik a more bake el “hespread wash br longer a hag ayo kere, Th whe fos snd fms the rs wee ded {opts mathmatal he had natural ef ete alone, A though prong Fond can large be reduced 9 math alin = sok fr moe seg. Wall Src fad wade] Bad ded ‘any Grav fren the markt, bo ne ter Kw tei or egorous bad waked, Ove the sore scks ae sch inert he whim offen neon rar, Ove the lng they ‘ry wth Business performance which sgt oe uncer {in nora and oc fe egies dame mer ‘Buon Mali sone served, Cad Alii dae nx ko fhe proper prceearing mull for common stock Bar Low “erm Capaldi oor a et fly reckoned ha Tamper is mode to. "aphan a been sence pails ia Harpe and he toute te Fld wae pe for fm wit the ay ui heals bur~snportant—eshou te nod totem he imcy dels of speiesock aay Rosetl, ts had en Sees herwcen morgan othe penis ewe Erp bn ute seme of diferent won By dfn lt seal extension of the Busnes ted ky experiment. aghn osacd Ws aeatch on sald ped share, Various Europe socks were daly hd Volkswagon forte ied inary sace and a "pees share he iter th Tihs, BMW was anther Hapa abo lok ap the alan phone company an Teco ea Mole ts subsiins {Lous Vite and Do For satus reson one ie of en flicten wade at dont parce ene Haan sped The prema or arbre, David Made, et ner MIT ane ‘conmigo syst Ba Haan on thei *Meds wh Vs dm” oe ner me. “pao ad thr and Medes wld work ot fw 8 bie The pied share wads ween’ perf airs bce the ss ch nw mast say no A re miele ame obligato the Ue Ses oe al sock Meld No on could ny pie he it emia ‘Rene ecesive uth ced cl pio en wake trove be damned Given ch uncer, most ayes ite Sehr ads moet, But with wots burgeOnnE Tang Term wan deveopng ses of pope als cw Re 3 tah as nor hie ar i and eer ss nce ted te ao nr Than and Mode fond ata fen phar ade an sn oo gn irre wt on Stl was ved by to ed cng Repl Dash Porleam of the Nevherangs and Sb anspor of Eran. AkBouph Royal Darndest sores om Sviends om Repl Ducts ng frm had hcl ral atan8 prs se Dchcn h sk ‘rronned y sas pn of vert he Dut xk 38 “pal move Ba tee wk olan forthe pre i {Gewal, With Europe fg cir et, Hagan ‘hued tha mana iene weal tr mad esa he “prea Berwsen Royal Dhol Shi wal contrac, Tht Was 2 Tur the ne of Haphois poston ws sing, Long Term bet S25 ion half ff Sl he te al shor Roya Dunchestowt of aus any aman a te sea woud cn travel patel ams pion hat age wal ig‘i illgis—-ank you ae slr to Bing ced to sla Ir Bat Lge, ing ily leveraged a i that se Tovheil hah of ifthe wb ded ae ht yen anh pre Sere dct the Seenorating acpi here ‘Shvenplanng hr cf te Royal Dahl ga th ace! that Han ssn to elev nhs iia Seve ealonly fg” id xcetve Wall Stet Bak trae ut Lon Tera ade mi or ines he sae of Goldman ‘neta ahr ok aba being et Ine ape fu CBS fr cep the pe of CS aed 20 rents S783 share Ht shat pce way ld te el pre 1S. share, The, anyone who boogie CBS afer sh sonounce tem oud wo maken s yee poi the al ie Of ens ifthe menge lero the oc oul gine ck he ne 20 pe cnt gain, And many mts fl one ray umber of sent ca sae 4 es, mer ac the ompanics thar fe ann ant eer boyy tthe condo of mathe npr of he ange of experience regu all rou of ypc ds Inet mrp deal The bof thr ae gh csi i al ‘ues nga hehe wry ew de tha re mon kl to dow, Lag-Tems approach was aoe fren Since ‘rofers lel no cere nikal tock ier they a mc thi th four coure of ack as andem—the id mde Mesowhle, HitbrandSoaphe deal ck ter deal stock And he neal ough the very bg ze, depeche growing do Coron of al donno ho patter Scholes and Meron ard hac mere rhtage—pacarty on ssh sama ony Thy fortes eo that Long erm ms lyn eld Tohich thd ably mo exper. Mercer sad his tare Trew she bond word de nt In eg arran JK a ‘Shes net ws Long-Term’ via wha ha he nb aage "Wihn Lang Ter he Shae ocr mere aba we Bence Meriwether an the hte ke 4 semi olerating al poe of Siew nase ths wana mia hve at is foo dn, ‘fer sch a Tongan Writ parser, be war cine 1 tee ain bie wo lane wre ade, Hilbrand 36d Tag A penal loyaes weighed om posi conser vero ik manage Tirade wat by the mnt enrol ino partner ri Ronda "A of pepe le we sul the fk arb bint Botnet formation sve and we wer rit ade an ineratonsctve wy The i wouldnt ely have sed lr of ik aig at the gewraly poplar Rowe oppncd the ade (Moret 8 Teh Homerc Rosen yess with Hila and Highant, ad he eer finaly me alo ‘ern arb uy ree tat someoy new ba need the same anda the somebody both ery ganda Pets Rmenfel ur te “nemation sete By buying ach felume, Langton nas bos deal stk arose the Dod, ‘Soci spreath mo maproitsble sek, Av way Langer wa ‘stent tocar eal ey spree Beane rine co mali eres with sera Sil one mares at Long-Term aud, Id Bon working fr ear-—and rewrite ene ee sgh, Lng Term the tances the rales he ‘One nih, Hillam, LM ad ll al ner with Dani Tac prominent rk rberapr Th hf the esr Lae “ech, had the impression tat Tanger thing ao te ince sll in mater eto, Hii exes ‘very Fnac pln rma pci bik ay sends were oy ¢pecen fo Yo poet, mich rae han bond spe “Dae usin lnk ery arate ns et ness hee eytrad to makes coupe of bs point Tah mtd. “The oly beat youre wrongen a gonemmene hind the ses iy chang lyr halls pot yar rng tk ark, you can kn aly sto" srt te att desl pene neve rch Wider than ond speak wat that yn oad mea lot moe money Incr abtrge Th eine Lone dd wha ‘wa ig bth nenpand ard iy leerged a pe tealy expe sombination, TercneSallvan, the Long Sesor ftom Shaker Heh heard of ts rskarb snolement "rg the wrapeine and ws shocked ht he and wasting far fn ken {aga rom CBS, Long Ter get poison way MCI Con sitios, wich in 996 agra Be aud by Bish Tc aati Rath CRS a MC ha cee elt ck 4d ich del dead om for loge ha expected ee ene of CS, ag Tem contin sap a sates cv whe CS ck ad inched wo within ses te eal pre Langer levers ot ‘herade was aot 1—wihou shang yop knoe fof he mere "You're pking op nikl in ronef loers ‘een money manager ward Roene alading to the tk that ne del or aot wold cap, Fremal the CBS meget imple whch only emboldened ngferm to Jo more xh ‘ras pote mo roto hi dah Readers may be excel for wondering how Langer cul br row so much tard the pce of teks The Fer eee Turd ane tataoryprvinon Kr Region Tee 3 Tm on broker loans fost ko own anc” Fr the psec yar he Prd hs st the mim gin ba at ‘Whe Long Term purchase sks i wa bp to ten ing actual rts Rat he fa entered it dn. contacts ht ibe the bsnorfck frint Lang Tem wate ean the return om Stee malo af CS ok ver dee year cas i wou stew "swey” cmt with oy, Sie Bank, LangTerm mol are make a Hed annual py recast an tres rat on $0 ln, Ad Swe Beak ‘med a Lng Term actully puch he ok (the tsk, {neterm would pay Swan Rank) Mot lc Swi Book wd ec i by bap acel share. ata was o Concern ‘Wht matic 0 Man company was tha hey col ake 3 tg ncn 8 CRS no mony doe a wou hing shout a cade, but ro feat the sae of the han ad ‘eared: Meron has fad come ero Ma shot Bl ine rox sie he marginal, Deratives kad to ered ot es trast fac the prom behind them had bes aoc ve het baker he ne 19s an al 98x ha a the ea ha rac deat, cal he what you Me tiered hin, and evcpue che the some someon Gea team That was undone the orgage bank was lo po inp vel rate ism Bat by sng dst a ante Erle of Merson) she bank could vera fda kt Taring rte one, The gio bhi he sith, ever ton here lay some eer party th he pie ede hops company planed wo make anual owing many ar {hey soto hat tcy bnew animal st The fs modern saps ng in 981. HM hal Bods evened in Sera francs ad Grr ars nd wate ser doo dala Dad Swen a Yl Ph, cul aed Salomon, sas that prhap sme ote Botowee con beere to nae deb tht ie fom Ing denriated in Tm ena BA, One ov he asthe World Bak, ‘ch ad an appetite holdin a vay of arenes. AS {i indent o borrows Salomon give the Bank slip lower ‘ning op with dlr debe Word Ran wih he erg et Nd ss te wor of sap mas bor “The busines gren-at at ably, then exponentially. Soo tenks wore seeryng cblatons fr uence, eet rt pa tee y ftae steno ct hat could traded ot St Ie 990, here were tion wert of test a ape tet one tgp of dewatering. By 1997 the oa Bad Sara to $2 won: One sitha—agty ante —ofoh trorenous growth was fh bank’ ancl uence in. Byte mi eogon he fan wate oven many madd The bankers wer oo busy making ney hater aa he tisk he shed dare thi ewig nes The th did wise un sch as Hey Kas ected coe Sho warked ot Salmon i the 980m were gored, Kanan re Ses 1 sll emer when Minter’ group came in and we sem dng secrete sp There ean always 2 gueston ‘mounting, Aer we ha flo tent oe lon Te ‘toro fie hilo, Tere ae never a ana fame ‘ewan ho forme tol ge tom Within wo earthed a unig $125 on Given the apa nate of Long To and evra he vise fe mpm to pao te fn date ho cording specie trade And sce any of fs intact mee eds that ced cael cache ut wa ope oa ‘lt Lng Tew esi expo, One could yoy hat it apes toe groin ney ucla were expres up a ‘dy Wal Src. Alt impecepey he Sret Bad bog Inasive faith game, whch each hank od some Ke Ihr though + web sonra bla ein ie or Repaaors cme inehiey wr. By te mi-1990, Wall Sat hal eco acme one we drain shocks” dear Broke or tations comico Belhy one dy ould Bo ap Invoke the net dc ban deiativeexpmure One hye, (Grane County Banker Trane Bangs Hank Meallalichat, Stew Compocition, and tke seed sen and masie Ia Ave a arama res relatos Be 1 fou ih posi oa shck tothe cn sto: al on the ht Shenae ie al of sig wou rel thy fer. Be (ste sich ahead ion so nin wth Wal Sect ha is are could wd the sytem? Sah ears ay have een Frc fa hey nent ems In he weds of Nicol thee gs Herter have on aan" veal the sping of 194 Ht on Long Tem ws tang tales New York Fl wa econ easy abt hee am thoy nso cei cading deste ret Apr in eter fovbe CEOs cet fuk nthe New York pon, Chee Feber ‘Secunve vise brewen of the New York Fel, admonished the ante ot och ter te duty to pace Cre as foreasomen ream eset ol fort ak manager” Fel. tere waned Taliep soccer Fe oltre meth fanaa at aver lange New Yor Rake i 1997 dca the nt lass wth lg oe: The Fe cxaminces rd he Ranks step up th omtoring of edge and ac a, su rng ep ht the ke ete ala pig he ‘Wahl to deities the py aking ar of he Fe ok {lef aprchsarig weth rcpn mho a fed wih he seas arya ee fan of pb {Eure Greropan resent as wth priate bars Ty cio fob Red wh weeping eh ad a oe Propo fr souher doar eee Even Bef Franny sed vape dou the Faso margin rls,‘resp asta approving eyelet han singe tend vme frm of marin to the derwaine er. Green Proponent he margin vs ne Hn 9g rey to Congres rea ke a bank’ i Ais het a opal ‘Spee thar more and ee on ening) mals mets In the case of brokerdeslers the Federal Reserve ‘seine hi sc red Ait fut gre he whee of markers what Grcespan “nee in tht wh such inthe mer ap So the aks” Too mach ing ensures mpeclton nm ie, no mat how nica ccm al poem sla ‘te cay of exon comet Green a ary te it rede by tetany a» le ae “ha 1 rstin dative ke sng were the harks But Wal Sst esr ples dt The uke own hale ss mee sti fllonnins oy te ne syn, Wal Src as veal 25 to. Aish th is te ute drinks a fd cu fo a “The empting nts were he fn “ple were ok ing a the god seo he wor” need Sve Fede tnd eg fond manage a Bakers Test could amount wt a th as kp coming deve Pt cal Fos Saving Hey weg nate mon frye 2 handed man! As hn cy chal the Hd Rese they sey lao tr nar mari on the kof port Ne negative news By rah, Wal Set wn train $300 il os become had to account fo total expos kde asked Fach ak ke the exe of or expe oa hn paulo Lang Term. Noe hither eink abt sete th ed and mig be sary exp a dace tes. "Yo he dng hig hanks of sine with hon” al Sin the managers Swe Hank You'd ase ier ne prvi ut ely you ware mf, You coulda lve hey were omg tat mck ae Sie Ban haul bu perl ingt Langer. To sophie inden atnes tobe al prey tbe opera ‘Grech ts Hstry had paced Langer. hon “Soy aes ag to app th opin ora that Mer {onan Sus had ered aed and Willa O'Came eo raha wh a year, had tuned new eo est {pvons O'Connor & Assan became ane he sve the todas tse 98h fn ha Dan Frese spon cecal egies mn MIT a rl tc tad Ate the #987 nok market cash when ot Soe manne hms O'Connor eal ed eer pokes ison Barker Tens, ond UBS all had 4 chance 0 sogue [Conor bt pamela Bake bough fe Ts tras ld mews hake were cere Barents which ris Ss ata cl hope fo eae a proms, OF ‘Santry ny Sn Ba wn the nt atl Marl Osyth hes of Se Bao'an sion ee {ochange hi Thugh be had sted os seen Spee ‘espn is tne ewe akg aes, Ospl had 2S at Merl Lach nd read ht Stet hanks wel fave to denier the way ofthe ck cok. He ed (O'cannor shake up the porch calor Bel necting Yan {cin sich aan ame stm tht ered ae for oa fem prormanc, 994, Onl epee he pcan ofS. ‘Warr Bais lr inc Panky and Sin Bonk wn enced more Ts er Cabiavera, Ose’ oan he 3 UBS, inl tht Svs a sa baling 2 powerboat hat (uta hoa, Charamasc and whe Ospel was et ‘InsCaballea pane and came depot rosette up Stare He was espe enon Pine he relatos th Ln Terms wh heeled the pvt pre im deren. The [sry todo than edie to approve Myron Ss fave At Sie Bak he ara ha ey ly ete ha a US, teh peroiedvoward he gest echelons ofthe bak Listesea and Bac she dass sh fil pei ot avin trade sp vet fs Lng Tem ad theca the wart ‘Sen Scblnancthe vk monger a UBS, hed psn i a tea Shad Werner Bou who oer trade Tat et 0 {Coase tafe ro. hogy UBS seed ts Lng Tem trainer lta anise wth Soo lon woth of Tie Ten eld ake eer the nat soem en: Ava be apie theo UBS Bogan Seow eres the fd ‘ally, sete the bak was peated to taal $266 lon i Longer, Tha ws the hi Hea,” accord Tame the akesman: “it we wrote her clon tet on stock hey woud egret thi agin a mach i he oy of ‘nanan were so evita they fought one which dion of he Bok should bok he tanation. Bona clam forthe income Goran ed shoe, cep that Bonar and Cab allots were close ne Then, arf he det 8 sed to he [ants reason department which pds percent prem" USS muna figred that ecru tcy cool repackage thie Long Term vetnnt od sl wealthy ons he mes hey horde shou thor ne rang canny to rw Cae aver toasted thi aan n Hong Kom whee and JM ‘Longer ian ad cb stoi debated ho big 2 sho te ware would be alle eh, had pt tra in yb iad ad he mnt mony am character. tal wate the b's sare. y switching he pares prompts Income to eptal gaen the arcane won Tower hea ae, Dt the moe sgn move ed Yo Be he hope offre i ‘Asuming the fond oe the rat would wrk ot ones Tike rok fie OF courses he fan shuld fale the parte ‘ul ae he $89 io, But hte ching ike sis Blind onc oh poy falas he wer time when hee for thor nas able wor hing he pares tnd of he sate ‘ton ha sero thom so wel, ke aa Many pat thetic net mh no be fan Malin dhe ner Fels nan exspto, Be tack th harasses rd an tod ot fhe warrant" Otherwise, Sano he Those as behead what hey we dg with sry ounce of Ah nT patna fog sly hog small wae fan dal with re Sue, oh Sie nee ake hrcten cht nas nn coapsT leverage cen trey LTC the parmcrs manapement compan, horrowe 3 el of $100 lon From aun hanke—Chas let Hank, and ret Lyons of ance mus) tc pracrs lowed righ ack it the a “Th hangs wre oo bila Hnew no bounds, nr i ‘twos any tk. Fr men who peed hems ei Sino of son te ve ve onthe ele soe cx, tn they bce that besonng thers moa ify he sho bing the saree sito empe te ft Hibben pany Hacrowed $24 ma recs bosom ain fc the han Hae sci Shoes ncoreny ts oer Sums ad (iter partners rsd Ker amounts adn, sore ofthe ines had rag pramll th Bear Sear tcr broker Ce hart and sl ea en Teepe the ar fem Map in pata moe dangerouly ang sera Teas eating amma tinder with Keone Ao ose wa pw an bette nora sige ors the aad Fas Biand ad be win and esting ne The URS waranty or Ling Tema ee worse psu moment thn ty agg fd pss tolnve the onoy aon ha an we wa ii of moe Thaimrc compet nag, In he al for eared nisi pre elon eel pena, though well ew Pr averages ere lanier derates fl a Sie a0 yor caene thar opprrnses Ba gow See A {up of heal panerscledng Shoe, neve ing tee ‘oes unomforae wih te funds porto, ‘One be opt was apa, where Long Ter mas xrefJapanese ack of tainty wih and mipcing oh opso- Lo Term moses md hi a "abou a nde hl Irate tend, Move, dul hea Berkey, and han of ‘thes wookd work the peared shi taping il 1 At wt the ‘ex day's Tokyo rk fly close Shy fe hie ree wich le, a seeton srw would av inte forthe openings Lede wre Japanese warrants aed, “We had a cope of reader ike Dav [Moet jn illg tec,” Rosen Sila: ta June 1997 the tar ere able ever nl athe aay fom Gednan Sac. and Arn Kesha Kemer swaps ale tain TM. who had fe alg Jpn fryer, ke ving inttonal presence the. Far Western hedge Gand io Tok tem had roma cach, Muli who ha nknmaly Jaane goverment of whe he ad we the ed fennler pees 1 the hgh teache. The parc cil of Fre in Jaan he por purse connie In Iapors lang on ws ying oly» prc, ceil rk bo tom: Lo Lem pce snk nbd het tha th te wud sea wale ictal wade hat ie tin ome ‘ata din os pea, Many othe parr al dons sot the trae hich fr Long Tem was ncaa aps, Ba Ian and Haghao wereinesing rnin he ie respec of Ae Long-Term 97am ming in Jah he pares amid they wet onsen about the srning sas nfl aap The iting ha vo beheld ouside the United Stevo ox mo eon Lor Ter el state x ameter was ened inv het by the Toone sion thatch partners could and out in a day, Oly fon ofthe Ley, Mains, Rosen ‘Sholay snd aber twenyfve tests send The mc wa bowl oped had conser oe iy than te parte ha expected, sgucezing pret profi. Tow spall carn, Rows deta ht Long-Term ein inven ea tric The sal crowd of inversely ened, One vest Uoudedy “Me hear jute the gest player sn rake ‘re yve™ Rose wagon ease. The venors seed that Ling Ter wan aprething denouement. "Do you have an} Pano aru the ene?” an aver ake. Agi Rove et anne “Well whatever jou do dot str in” fens Coie wth she dow lk fr aia, oo printf Fie thane adres siamese ft abo at Long Terms Ire! ed fon within aca, Won ae pesos fora of Finance, Nel Sher of Hartard and Boers W. Vln of {Cap psy warned that an arbtage rn of Long Ter tnpe cml be overhead non eee caning mont ‘peolatrst phd peasy fom eval With aay foe ‘Sic shey predic arm nach ace abacus woul expe ‘roc an vere pk sak and vd to ig at marker lee err aa il wen sr option fx was or mine a 4 confeese nf whol Camb, be pub ‘rhe he tn shat mare could eer be ote Thin Jays wck ater he ward omeraonal me essere tl shaken Thin, foe hy final del lowe crn te peop el zo eet The wakes Sqre o curtemes she Pippin Maly tl South ave, Resign Rae AK Mita an cer hts grat) P Mongar Scar," hk theses have Fem exanerate" They ominasl anyway. Singapore Sle ‘me der heey slg Only Hci y Far se ages of che {a's prt Ine than 3h, pundits Ba stoped aig of Aes mac ow i wis Any eri” lawl scrapers {rete dring the Doom were uel ing aca aed asm ‘le. Mahithe Mama, the pre miner of MalySamed ops om overscan silly Geog Soh foe sing he Ts ot Shur ha me th i sui bu se rng rine Fo iy be anodes Soins ee io eden orcs se tat a rc Be ip at unk seed. Comore by Tey Scary ober ‘pau cor beat: Ra Ba pve he wa y ring Ra {Shur edopte the ares apefing tc of erprste Scone and eer eco, "The ple ct ha ery sobs ans ened vo nonin companies witht sy tal knoe ihe anal woes Welt pendent thew oak, Though Weve ness ba openly ide the sme mi tehoviay ronan fencing wen omen Sing {Sine nether ore er 196593 {fv capil had fond Indonec, Moly the Pippin South Rove and Thala evens he enemy were song the worl Fro Lge pot of ew, th Aas opal sd ‘devi slopes werlnarcve Easy rede whch hes nds ao {oye hadld totaal encase neues Tho hen She taMs had ume recs mace eaed Igy ma Wh oe found al he amas sped sn t ane. Once Nontoon soo aac ths ntlg wel In ae sre ds fan resid i a a ew the MC mere tres neonate lamer ps, MCTS xk pose lap mg te ot 19 rl the tne gy eat bad ‘esi ndangarone wer In Ais whore Longer ve nets ee primary Tapa he and wan eather the sre Spr fate oe of Lg Terms fet mths earned yoo mien, hte fr pores re ei ming. When the atts ‘sured rom hi snl ging party Waterile eth Mewi chs hey announced sboking tt oui sors in Lars Te woul have stake bask bout half ss money, ath Ince athe nul ting had fee "Th ad ha ences ‘Nerwether explained. The apa acon wa cet 3 fan, alse an much ar ath Merl Uyak, Aconting the rsivee ML added “Ths wed primary cone fb “Chval ncrcne i thecal hase oot the lrgershaexpece fost eld eo eu nl igh aes aes ced By Trends mers ‘ile thre wn ting own he haar ath sha spe had mired and apporrnites a ine Wik 2 como fame in Fare ha sendy Ban made Wah dere happen the speadfernen laan and Garman Ron a srk om 2 Fceage pts ote gure po nin sn me, Totem plan wa return, aca 197 al profs money ese daring 194. ine edad to reir a {eisai ved af that die Mace he pe fev and employes and partly exci woe Ni tee sore sch the Bank of Tswana Cay hence eae Sears Lon Ter ling Bk, oan exept. (Others oma ty br Lg Resta ee own Tey Chores with wotcing et rsh mer” ere wer ne ‘handed Merril lynch, We were fee wha they eal The plan was cotrnerai wthin Lam Tem to as Mkt, [EMCLibend though staple somseenti weighed nvr of nt fuming capital Sk and Mona nepal pa wee "song pone opin ack ss wel, They fo the ew hermes yy nage Wha se he ‘Erie ened Be pro Maren LTC he manage tte hand, Hihrand and aphasia of the fond nt wane ate he stakes byl ote es Aral tc Liner ow cr he dy. sles ws free He rand sone Hak who gate ie spre Uh to spa estrone the aie investor pl to say inthesso ions andthe fod redemption of thir money would came to sem 3 bend wa he parts nko wold ar theme ot without the bento ee partner” ee para wah cred more han ba of oe. Now that hey a he Sle operate mendes hi Tag foe tem oa. Th al! 40a sodimmuted pepe Miron Sb sl wacom thar bang rvlng nt thei.” The piston was hat Long Ter ws pri {ea sling bck be fae of sinking prea Yet he ad ogi rink by oe fo, Retring Cpl nly reload the “ty seporting is cts ich were fact skin tl Ince tne when aportntis were dvi an the arto How Bed with no poston he and wa deity prea. Thigh Ss Rank whch wou be Long Tet gs esr ater mzing wth UBS, Knew hing ofthe le as sing ters, Mer evan the waa package, a Fedo the head of divas a Swi Bi clld the bank Stan and wad in, “Th fg to pets” The hi poem ws there invent wax uhedgable She Bik war compe ove onthe dows. "Ae har pin” Sean ily os Ite benign tumor if ings ret go Bad we'd ave abl, fete had ver ads pobin.”| . In Jones Ron Tanhoun, the UBS seman who had ished she ‘wien eth hanks fete dhe und darn Of rete Spot rede spreh cotnne to wien, Mowe fgg tl ‘hey widened in very maken which Long-Term wan ate The trouble wan't ci to ay sony wi geal pling bik tf ered pers eme thar ares had bouche ‘ik nvexors waned satya they woul yay amon ‘Tray eating tha hey would seen owe el bs thy got out eek bo. Ii Mote, end andthe one pare who eb on his svt in fm compote sere the ade winds chaning Heroes age hs parts to ower the em rk bw ME ‘eet orl asa nonce, od shined gambler Since mor ‘ng Cacia, the partes who lon a oe with he throngs Wal Set ee days had Eecome ven more Holt from the anda, ut ocasionally weg that rales se fraatd, Mtoe me James Ricken, Lang Teo ental cu sc afer work one might tthe Hosen Tater sm Grete Fctars yes veg the next morning ow a0 expdon vo clin wow MCKiney im Abska "the eyo pt Back, the work wi have completly shang” Mate pred dry Alone Wal Set McEnroe ow speaking of igh guy" 0 Tey an By iJon the Tay sEveeye i he [Treaty] marker ara to go oe fold The Wal Sr Joura Face oe Lng Term Capt whch trent home short on Trays vey day Tray wee the Roe end thathe fra ol short de the ric And a Treasurys ali, spends between tho ad other vrceed, Morgassbaced sears ned ‘rer Treamy to 013 py Corpora So iia oe Fm 6 therm Tears cin Wom pt "Why thi allemsuming far of rok? One aps, Asa wat the spar Japan the yer es ming acest he cone Tandy dep roxniin, pence bed els were planting ‘eal the appt of Long Tem’. Ad Jan ws the comes Stone ofthe Eat Asan economy, Wath Japanese eons sag, FRck thi paris thee wee al of» rp Sopresson in onesie ropa a it perso pr ali, Sith Kore, socks plang prot nt ing sa The fear ay pre: sesh every diy emerge indie pice The drumbeat ram Rous pew sal ert Joe, Golda Sache mans to sll S135 fon nc year Ebon ote fo ‘ae Galmars mao tly a eurph faemaoii, br ly per ‘Sled inven hat Rast’ pole wee stating et Golan roses may have hen a til pre Natural he bk pxketedom Ramo eas attain: the ner Bon nied Res 0 ph Golden hack a's mont convenes ne The cen in. “cot hank es rpurng ol stock he pba re Feed vo hve the Rest a of i ok, And Golan, wih seeping ogo pubs ille da owe Simm thd erat in Resse Teo tre Be tc th he paper had ete iver By the en of Font (Goldman aes JP Mra an Deh Bank steve epnning choke on asa pape Tee ates ans bile skyrocketed 092 pe renin Amen there wee so a somo The sock ar nas dey sole, sb optin pes amped. OF ects ‘icone Long-Term, phd welts rn 27 poet, ing rel ity volt he vel Longer a shown a il tne. Ovcral June, te fund Ts ro pecent by fr Stes moth eve Ling wn edn 1 ace or the i Salamon Smith Rare Abiage Croup has 0, Will tr cou Blre Jane was at eed wo hs the Bs US. bond arbitrage operation. hanno he fa never ke On og wel ao ey Wel ad ied arn ce Acre ad ‘eric trneymaker any cave, Sloman pan bate seat insur, OF cots the ma saan veep hee Salomon’ positions and Lingfe rades Thum, Sm’ sling helped tp Longer’ port nto ogatine etry ray ‘gard the fond’ dsl spa Mert ha aoe Tike Salemtn, Long Tem had shore ge swap spe & rates ta died fom the srs rte on «sandr ly toed ade Them ate ay gien momen, ee fie ate hit ‘okt, sues td eke vers demand ob ain exchange forage to psy te LIEOR sae ashore bank ate The isthar the LIBOR rae ons none hrs brew gos the fare Typ wap aes each country ade a spread re he meres rate on the county nent det. Tu thi ‘Svap spread bas barometer feet aha any the swim tha inva dean fr tking the rk of ing xpd Inthe Used Sato Ap 193, the sp prea was 48 ass nen set Eka es ths uber wat Nigh ad Been om 35 pot fr mt ofthe 9908 how, ding the re Sens 904 had fy spre to Lone Tom, seg ‘sis puns in Egan a oly 20m German a uncnaly wae foe aspirate Eo, Langer et tha the spoudbewven ew spc wuld nar Th of Lang Terms swap trade were inline convergence ost hag uta ory ads aren The wp Kena dpa a ty te ws wry utah for mcg, at ar had bon the can in many tr ts the sie of Lon Toei pp Tag An a eran 0 gate ques) swap pti, Long Tem "What wa won Jl word of Saban ct om US. ae sage brctme pub Ame fom de ise kd The Wall ‘Set Jenna davaed “Oppo eta ius eed over we the kya ey have prow." anally drs at deere ban aoa incre it 6998 ‘elas arage rade for fear of ong camped by Se The Ln Tem as oly ye sc bit le buss sali ye ected nk aria toil hewn. Whats ono ear vied the pres ween op othe natn. Ty Ja ater Sw Bak sn UBS menge,Schana vied Meri. who sted Scan Sh dhe news Langer ee es Bt |My x scconfides sed Final the one 6 hada he expecting nd coe The ol dco that Lang Ten Halos ony al of ks someting JS Fd expced Bot he soy ald ht ow se fd would ake aivanap of ower passa la of on wane tore trades Se ‘Snow ad ateay bon uty show ong Term, prompt ‘sl Fl Fhe th shit ri fer a UBS at de bank wok eerily exp of Lon Trs kes iu: Nether man in Long Tern kes: Jase fond romana. ice ee “hu ete daily PL an in sock tay Jay dee wo aspfiant sone nt Br Nhe A The soy was hey hd gon ack an ceed ol ho meando {othe connon hit Je was am expt sberaion,That wa he oy ne TM x arf pny ny Alina t Meal Lye and cain of the fds hg paneer aboat the ees, He gene Shanda tse Wen to nvr ML report tau Fecal reruns ae ge” Meswatoe wax bs ld wl othe al ‘rst the loses had’ dame is pt A lig nd Fhe rare spo Lng Terms continence was ht se fund omic rece new people, Nyy tasted ith ne tecnolgy the partners hed sight se slware hae ve he Shnmcr The stall ba po of 90 Tong Te id pre Hak te ct ning Brig the fe wee n-pe eerc: a e ralseling as sghe fet ops and Royal PasSbl thy sae some ps Tans" Orval hi see de oly 138 fll rom 34 Fina, ond ts leverage sully rw, to hoe es, sed tng the fd Longer ha eds the smo a kl ooo yp ay to S45 ron 834: te" Bot his nat fps mechani may of eating ike tro pa volar: aa the pares shi on Ter hd he Inthe martes conned a ey, Rasen, where eo sr ban put yom shor rm ds “Shred dying a prin sl rave However the atte ‘lines pg ers ha were forever hk Ine CNN oe Blnmberg and wh pened eee to cepa a “Net eect cal Beco asi shat he dolar wa hl the igh of ney. “Pople mont te,” he aed us em hese fa wilt se pied wt coe wa frst mtr policemen had teen sosquch to pth any say of rouble Ih Jy at Seereay Rute’ sing the NM and arin tn workout S28 Tom Rss lossy demonstra tere 8 9 rail pron tha yc fn Mick ofthe Rot ey ‘would soln y Resa liga ad phoned oat ofthe com {Then Gollan Sih nde neers th shot eh ann novee for wey jar boner oe ex eweny weeks Isin were lent mah the pest wen er But testa Stopes anaying Rosen 4c hey were lig bask om 3 HE "Nice powers dor fale” sed a cho of Wer ISninthe syvosand cary, pling tha soon ‘hie dete To ei tei Tanker Weil nd Din sted a Rusa when ots dd "Sandy hated Rss” scoring to ae Tondo wari snl ws lee” An IMF til met ith Som ine and wg the an ack Moscow, hose ede tik nung Salamon hi she Une Sees mould ever iar per deol Bt Wail al Dine pre storable wh expe sonal thy se hat Rost wo forks fur.Thonh focal Py eos nd Kew part Tie Wel shughrt wav a poor asa for ah snes kt Be ‘Once azn Langer and ikon wee om opie ie ofa trae: Haghani and Hawlan wae taken 9p ee es that Rusia Calta simply skirt carensy fs Fano {Soe topin er hee fa edge and mang Longe. Felling th sry notion} Longo ey fous hae scone tthe potsors had mel hat they Belfovea wha wold aca i Moscow di {hy conlson experince ou mi a el son fou ade tow mercy macht ut oliicane gilt ts ann ton Rar wav snglrs por boar for Longer Trading Less than a dcade coved fe comme aed Sr fing become deca ty, una wat slot inherent nettle Hoghin lef story shold hase ld tha (Chachi ad eld 0 ¥959 “Ta se macho the pst Ina en ete to nk he Fe op ak tng apres, “Bke sal est a eden 0s thar the nwly frac scoumic emcee othe le iw years il comnoemdceicy Though he lee desl wt rel lane ether than capa mre tended the think aba arate neat” ach banks ed ‘tober ean se hee fre woul Be seme ters ofthe pce” cntist othe we doa ton ‘markets On Jy s,s hore he Senate Cameo Aa traders “have manage cad ks gue ete though crt ‘ahi ofcourse The wore can nly ment ht To High his rng ees week of Anant Rss mars snap On et dlls sig the cmt, ser ding ies bse onertapped andthe pie fit chief omy, dw ces the ncrmet prs cont onthe rule The ba inns ow for ck frac a sot bk The Moncow Sled murder bly bled trading. ended the dy. Sow ‘if sme oo peeve Lager Rea bonds ft al Cher prce ef nly two moth cake chen Goldman hid hapa Aether Ae he mer waited for arable devaantin, wish the gone: rent sil mised wuld soe onc he Communi-dominated Bas the Tower eae of Prk. ted efor meses the povrnmear begged the Duna (0 rermene the memes Ieedhur hy hen many vere kde viding Pree hrs Yun weve ala Sena dc kang he couty Ys Ts mur rasa i hig de ine Unied Sta and Europe marks shared fro sling of mgt: thes n Rea, weskon in Ai at ‘Sina to per ll espe specs, he pry f China Sean army Pst To sn a Iressa at of Ravan and Av thy fred eto Thesis a ular of sey when no oe wate nk, Thy year fend yk suched ater new low. poet ‘ata cd spre ep wierng Sm pl he ih pio for bol arg, raed ds a ved fo pons ne Tenure opens US. swap sade tg (00, Ar alls ankcatage Jos were cng ack: capa was Be ine os bod stage ot al led rom As The Fela at fs had ten favor dyn ward de opens ad terse cet ro Rat nent of dow he eds neis wee om Longe a ong money Aaah forthe sid fom far The parsley eo ants wae Ea Sects Relig that rma, wh an contig ig ‘ewes major hendache, ayhani credo boy the hanks whole onion, worth sot $e eo eee Salamon people sepousiagas® KOMUNT PETALING JAVASechaba Slomons ads nd he na epetve forums: LingTerm was cling te stan nore Rohe Shin, Longer’ cht financier was baring fed alls very ay 2 wor en ear Monga esd techn Broth heard therm co, Though Langer ad nce and the sh i wt woe making oe Sieh Lehane inna” fly Mander, bed reed, “I eee hiking tar toe guy might eying They wanted owe Lema amin thr nr nally king he poe om Sally ansouy sb thir pecs welbing te pats ich cll thor adver and airneys Hae ich © Ln part who was mare to 2 Caierian, was abou shan Mab Ba cha hs had Borove a Term, gt ac of ore, On 2 func, ted Nyro Shs ly ours ore in Son Fanci, where ha fants. wt fant hme Ressan Hil, wh high clingy and a rraceeveking Foe to's Whar rcot Salon." a then, hols honey ‘He he fan And the faa les ofa od bay een severe Meinether confit went shad eth int Chin he Iii sprede Bad wil so moc hy tha ome sar hy ul ony aac But kot a desperate Te ma Ags Long-Term jg ore heavily to Rami, hee a realy ovned hedged Rusian bonds ts wll some that were hedge Nw whe he etre world man watching Rosa whi ‘finance worn hans nnd nenment on ols Haha fe gt ve Rn bs hh thy had he sie sap on ha engatc Eater ell, Nether he Nob Prien al he ‘res matered mos the profesor wee rong the die, Aso it thee Seid aot mss" wa agi THE FALL bong the cero the aca cognmse ho tray Ke he {inn tthe peel ple bu ha how Menuet te waned and ho ha. how they expel he ‘sual thee Forts wkd shi raid the hah ees wen farmers were among Amerca® int papetoas, mow sca Xl mos igh scene isn Te fr hed 836 lon anil of wich oro ithe we posal tH woul take ol(On Monday, Aug 17, Raia dela 3 debt moratoria, The ernment sinply ec woul athe we ub py Re Sn western than Weacn bond apt Irian he alr of ne eles nore ret sh ts Sevalanton and oma es sme ot ois dt fom { pocement that ha pom that # would da acer Fate tee end Rusia sil te moran weal apo 3533 bln ‘faa be detente rl, hore even i he depth ‘tae Latin American ce cs thats mere omar i “he resctom in makes was aes at st Mexican ad Aaron Hod fl ad woke Japan a are ng ‘es weakened, Bue Dow rne nel 190 posts, Are harks mong a dion that extend ask 10939, ky dred that thy expected oath he coe ah ie fe Robert Songs ce cet cert Chae Manharam, whose sok pce ses all 50 pect within i wees cnn rls 0 ‘Wa Sree sy salt do or ow Raa mar oe for Chase o oct US. bak Tn sem of te srl nde scp cat Has wast Veer Sopp mia omer Akdnor tal And when Ras hd somchngn he mak de The wort ion th theo anlcope ald alway there tn pt mater ib as om expel 25 filacy. Ths te there wae no roe by she Mt acted Bat by Rober Robe the Group of ere Weer per The ha fhe > al angel tay t= remork Morr Gols forme See IhiF esa The spain foi oth eile ol makes ke a Srian gle. The deus shared he ey eon pron fests tha the aly et wold way tr ante moral hazard bh" that ad ening np sm ince Rabin ha den tothe se of Sex Ines a frag and tenon une, wed tht no nrg make ‘otal fswveny ou Rao Communes al or succeded “tng marker scaling low sda dear cata (On Thana, tree dyn aer the dtaly mare rod the od acl Sarnia entra European Trey were weak The Soak marketia Cara plage oy perce. Venccane paid td ted to buy dlrs Bras far grb ao pesr Germany sk mark fl penta ifthe Rosa ena IN thermometers of edt markewwes ike a danas re “he Beth honk Rly ode adr aad shot pon owen UK. vray crn cog rads ton at Long Te ‘Hough sap were reasonably Nh Bucy econ aban th the rade mercy phe the higher” Roce” manage ‘hice The unt want ots done with aking ee "The ext dy, Fen, Aap traders everte wate ou The map so it males wat for worse ery alld, at ic war ally driver by pans for ines Bought Tsay et tu fierce aw month Before, they ad oi hed one rik rm he mest, Nw nal hey how fA. Fevesolord wel had sedge dr, dnd by Tapa, he Cl Lewiray can Insert seamed only the ser bod. tn the Uni See ha oe te ‘rr, peo were bain ler oweryiting! nde ad sing er hier! mes using he pcs een mach Bond Phir ever wee tnt by ite, Lang Tem was ng ilo In Gren, on hat glo Angst Fy tralagly dora Mt he er parton Tsar morning lw The cll “ah how elt wa nding the ate, Bil Krak the ony ofthe fsx ee nan ain markt rom ene popes pn ete next Rear checked omWhen he sae the gustan fr US swap pad he tn Bie sere ip dele On an active dy, Kor kom US, ay Specs mie change by ae much a pint Bt otis mora Shap speeads were wi onlin one rang of ops They ode stoning pit ie 0769 Ho any ser dh they a een oJ ews One ofthe wale gimaced nd i Ty she” he des Hada aen move ie thts Trt hal oped ard pan in gs But Lge eld go ack tha a |Avfaran Langer new ans one sacrament prea imposlny™and one or hh the nd was elo red. One of the ala calle 3 aera home ad nb, "Wl yo eto gus where sap ape ae?” When th an Ip told him, the wader sapped “Pack puro eve al me st That Fra, Lagi nt money hee i lke: Crit specs simply eased Mortage spreads urged #34 psy op tram ror nly weeks foe: High bs cle fo 3 cora7é Offsheran Tresurys sand frm 8 has pois Tho bene ver yam sul bolt rs the ton Lang Term wa gid he fot keh of eerge a Even a scoing onal markt Long Tem steed + dub ting The er Ream and Beslan neat Lng Teed ung an yf more han th ate Ras and rian ar "hart a hte bes st wee spp Bae {linger ad bol vet in Cina Corporati cm trad comma ol the sk ven who had re owt 2s es othe egitim ra On ha sas Hy, Nap the Shey ashe Lang Tenn Sr sosion Yenc crie Reseed had be ware dha ak arrange ms ke pking op nhl tle eh aly ped losin eee reach, ery unexposed thatthe prec ae ‘sens fad hen ledge an some se dae! power had "Ske hold fates In Gren he skeleton re Fal {Sled around she gabe io ach he eke arr. Vor ghar ‘ro Ie he red tk to London, Enc Renee ad ot ‘ved Som lle, Uso fora ewormeck vacation wt i aay He gua ralye back to New York, Meivther wa in Chia, Hs partes rack him dena en Big, a the Boe ok Fest fight home, Before he kf) Nall fo Cains he be with sich mathemreal erty hat fae ak oles re Phan Sion on any sige day, a jn dropped 859 aon "pect of x capal—on hat one ay in Aue had tart the pear mth Sys flo, Sn ewan dwn 12.9 am, Sint te end of pl i fad ot mor than id oy, "Word by ach sto mcs Mi Nn Al hohe Tn day ater he alo Senay, Aug 25th pins sented inthe snes oom a7 Lat Ouse the wea ame hedgers oarat sem ts waer one pare fim Reka he aml mel toad dhe ead sho Keep even the peeing. Hing Ke sid the Mur scanal Lace rm bier eer tha ence ach oo, Johns Hopkins and New York Unieraty, was alms always [Stok eck rar ep on hi sn of experi Hie si arb wins Bea, Mow ext, Haghan (hy hoefrom London} om UK, saps and Royal uth. Disb theta lhe war a dnd Kr Long Terie dete thar seine soundnen. The Tokyo pares report 2st Intl Menthe andthe ther senor panes ota toward the ave arty thy weal ae fh cpl ge he Fnac ad wat trades ened around, They mee ce {aha reads wold eventually conve, at they ad wen 4 mM Jr aed ve Fk, Hi ries had en an aloe aes une MS care: Spends bys cm leverage none Therlore eda t sithe partes wold ‘iv sll someting: Bat what? vers waned only te est Fay omy and Longer dal wn any One cana wat Imeberacbrage, Long-Term dea! poo bad etroomed {mig $5 bilkon worth of merger pens lang Ci ‘Seesces and SCIMFrkCom the le # stn 0 MCT tevercosommated tie with Bish Tesomm {eds thy al Ba hey wer ry cel the fo porta Thar sme Sandy ihe, Ronee ale Waren Bat, rich ing hi ths ome Ora, Ror dw ate ad ‘Sova 991 afer the Meer cada hen be hal worked diet toe Sloman asthe er hl abt oes mae. Now Rone Tir thre ma rane hte tor Lon ra perio than Bt, The lon ik desl re hd dane rk arbitrage tres And thanks to wining, ea eon nv ingrained wan wp ope ‘Nove Gracious he asked hte wan anything ee be could do Rose oul hak of anh The nest dy August 24 the partner stated ling fo ols wich thor pkg rer of contac, or bilan records he Grog Hawkine tap a ond Gee Soros fod and sup 3 [cake Merwter, Sry an Sky Droste, he i nate sp stg Sons iy rege fon Corman Ha taneand Mertether weve eet si be, Soros Earn Eonar ot her por oranda he ad a ndey ro laanh it pow dunn Heed he 8 roying el Meriwether wax intra unpre ste fe cul hve re he Sate Far ant dwn he eet Th {Gov sale stems in whch oss mone above 9 eral poi of atonal silt, “had eet ne Soom tne" The ‘Sect saw mars agaic an unpre, He fe hey Teruel wth, and were vefleve fy ning events They were ‘sero brat syste A he enlace “The ea the dom havea flap cue ae You have wating phonons {hat you cantante he hss prs spe Ro Se ahere Soro finds a jot ne illo, was a example Festa "oye phenomenon shat ay ete the pole Merimether ange aly bar prueba Long Terms ae {sv moll nap ck forthe with dep okt the eppeaies steve pet. So Intend sy, but Decomlerpeperd [SL wih gcstons He sfledchne cup Sor Ram esi. Th, Snes ys el be wig to Sgn milion ste ou of Augne-thar wee ater ed thar Lang Te oak! restore sept By ras ater Sco millon nan ‘Nom Rove eal JP Mangan ott anh thie rhe oes queso som rag Lang Ter Bok From hen on, Monga pope sn Lon Tem pone were kingli, sls constantly hou ow 2 sage aso of Long Ten’ po {he Morgin vse shaman to wit had fled» pareshin. Though ene tothe pats, expcly Mert, Mullins a Ro ‘I Meno ha no estat Lng em was sro ow Me. Renee od hime *We nel ge smc of ey” Shinn ocd Mera, Ursa the taker waned nom tle sme hou foe FM sk {bral expan se way bit the way Miia eine Almonte ara Hea! spre that he crane had rw ec Now hi sil ood wed crak, Rasa ankrapcy ms a uf ity hat head Ber rong wa devant Tur thse, LST tose Hira woul anv doe te somching The arherague piney stp, Nena he ster rend ylly prome tht Mn o shets) would Fpl for zo man, Now Long Tem medal Sa milo sre did no scm 30 mach Rika the howe wv dtd ‘Om Taos Aut af Meriter made two ne ell Ove sista Hoth Alison the Merl pends, Ordinary he ve won Five Bon shating aut the upcoming sop Watery Dt ths Score here woul hen pf neler Mite tat he fen ail ha fallen > lon, Hes ha aa. Tm had plenty chat gv as an an aneron tha cto use ae ate wth the fan sling Kverag-JM,l ieved in the mad andthe mds ‘eres sing ela inate Nonetclam EN need, LongTem wold have 0 pot is lost msn a the end of he month he wl fl to ihe ul Show th ht new mney wa cog Sly sith inter he copes the spend apport for anyone who Mavinghis np esn, hemp hat = ig est Alle gue he mci Soom ary st Fetbepe Mew ‘eal ero i and canny, S3maion a $22 lion eto she end of Aug? Though Rl of Mente, Allon ‘hough wana curiwn ati, ews be one tobe wane meta wot {UMC oer cl sat day wast Jami Dima a Task, the pat of Salon Sih Bary: Instead of the tw fe pking “ker eo death by loan abr ade he iat hy ‘ute Lng Te potato ith hat ws i of Slrmons e ‘rage Group and manage them pr og Bk he ther fein a seme A cape of Ms parr lle Salon, on, 0 icing th od nd for apa hey sa thatthe and eed 81 Sion ba wan we sed ein Bot Longer ws lining round, at gaming. Markers wee sey tng he fin. Mogae spreads amped nado {pms tat Monday, 6 men Tues apd 5 me ot Woe ach tke nore of Long Terms one akin capa ied Sway fn wes ling ony fer tha ld ae Sinn fy the wnsasing ses alps to ayeing sour themed re eng az ke nae auc I tw Beare” ome oto sas. “Duy afer day we Rad mse Tomes ad hey dhe to.” The im was hemorrapns. Tong ery knew it hit ede te ostomy, bat col — rot nth macht ner ste. Despe hehlyboed rth nd Trae here ng ede makes Thee eh Che eerone wants uta the Sime se: The ha heme Ju mse When lrses moun, leveraged sess sah 3 Lo Termare foc evs ethers neh ther, When Sond ie bell cure. To take stone example il News Cas eration Bond, whch hd vec beon tig at 140 point over “Fema, barely nae co tRo ore een tg he capa’ romps ad ot Changed oe I he lage, sch spread Po se awd Bt nt shaking ay as sb th gh eer thy may oti that The en of gan way 2 wie mares, but hs Ae tus wading in bond arts bt vance Te at or es Find ose sinny died up Schedule now ergs wre abrupt Std ck wasnt wel Bose tere was ne uy Them The ener etc th copsiy the lsbionble edge a, the nemcomers to abr nd te seule, Eorpean based adr, these sing the spend srading beso withing ti op {aio a doveWary ofthe ces mounting lone aks wer alien ‘nthe re ies dg and Steve Fred the edge ad mane at Boke Test as pti mang als soaker Ind changed the tae- Once hey ha shoved rey ta ow they were demanding me mig, cdi wad in boro the salae of his bone suk Reese the tae of hes aie theo, Sace many a hs hos more ual Frei sl ter crederfese, Turkey, Thala, US. mone scien ih $k band dds mater what he els he pn wash ad a Sells Aauch atime cpl arly ower be Sertoli riky one eect othe dering aa. To fy ‘Spe, rhs vn scton made dao: Mie by a sho ‘a ter Fede lover Wal Sesh is fear Baca Satin propery, et 8 Met ac who ha coined she hrs, had thre. Ae pecs lbs ake wy ro ed funds And at Banks hacked ay, ee fone ad heey cing ‘Sty Wail far fon wang to prtner wih Lone Teor ay come ara, ling hi pt lower the exe seo cing rom omen n and ariage a well Ros, Wel Bia hove dee be minor ee the amber of de fens doing busines wth Salomon frm fe hudee tr9e! ‘Weis bal Waren baat war monitoring i peopl, deni toes ner eae er sor erste Hata eos 1 hee fade Bate who stintively then Ripon onan’ cash when esa hy wanted ho Berke Innrsnce subsidiary wax holding deste coll on ap lo eth Long-Term, When Corin, whe had one J 3 cil ror Chin, ald Meriwether ack, be mired hm We [ete deat eack, rc hrs your a ending” Gold than warty to pry nmin ce foe away igh ped hee or Langer wi sil cata share tne. Tew tig ope a sine bn at he Bn loge had the capital eo due tem wll. Under per fram Godman a other banks, kok of Lanes oss ‘Now wa Wecday August 26 and Mi Ali calle to Sl in the dary Alia ae, “Jo, Pm nese crt tae the ney emg ok ke youve ving “Seo dean wax ie days cf andthe marke ews comin she ad: Ei vlaly och wp ro are p40 39 Pe ts Br in Lan, Amica weaned, Only, Weer banks “Sine adit es of hi te forme ‘ra Se Fs nn and Repu Noa Bak of Nes Yr, tah heady shang f the ne capa Rw, icone ae [isthe wey ies in ued the prope named Tigh RM Opportunities Fun by One Adore Wes Pam Beach, Horas, wiped oe Wl MLD president nthe Now York fed, hur nel hp Javkon Ho “nmin ere the el wae lng tr anml atearn te Wun hens onthe prowl MDonou ha i for ne, Inceningy desperate Serweher nd Renn ple another ‘allt Bat” Some af the pines had ever ogien Bae on, wot ees dg Meriter out of Sano. Thy eee the Sep dian om ec mah ch he etewed aor a i Sop bua kl pp Te Terns prt Ra ve ur Baie a bra om ‘hey halo shot Sg ton Ra leans prer {iM peed eh nr a seed ives lt rn lee siete Cate bad mare hey Ba, Theale Fibrand nt out Ons o Th fei cmp the he ne Hand mon Tio aha skein akg fen pi” Kit Mia lp nerf na by ‘ered That dy, Resa sch nol al > pce ies and he wor wr paging Ldn 9p ring om eeerin ii 4 wld resent 2 ayer er fe The next dys Wt Set Jour wold el "gba margin al Bet tran stony bc Ear y fin specs in Rus snes were ting ek any artes ven vena ek Vel mong en Teeny lta 35 pec he Inkou was pec. Ys om sigh ceded Dy the ‘iach Ford Manor he wldated 115 oer Tears though Ford wan no ke safe 9 sed han fA when had trad spread fon fo estry waned ey men they ‘in he pace of mid ht sater Bonde deere wo ater te Ture Hit a tbe apt eae Thursday an exon hi ck tis ole mode suite ple hse ats he Se fro » puerta was al th sl He (sescanl sb Long Tes fs ttl coal. He Tove afforsas dra Taras we one hs ered fra nea Hild sso that he aw pres penal rng forward ven fe pon dey be ha ile cee Be Ting Tem ws mshi oie ny Hibeand sia hae Iectered wc the fun ul ea al Ths ws hardy enh or Bale is pion, Lang Terms scr bt thigh hey were" Ian eae ha ile ‘how Hitand let and eld Crcench the news a8 wo The fad ha hse $257 mills Thurs cond worn {lye capital anh Se al, Ff ety tevin etn rem had made omy fre ham ange Se. owlites move tha een unsngetedrror omen he ‘werkt mmr faer An! he the nein ha ered, Om the neat dys Fy, At 8, Lang Term earned 3 Pot, Cre ads atone, sl he and capa ney S28 ‘Shed iy hope hate a ee wa a a she press had aor ry vd th ta quired fat ances LTCM, tr permaly ome an Mona, was facing ssi potems TCM owe Ste llon to a op ako —Ft, Crt Iya, Chae Manan sn Ls By le Agate bank, egy er, ms paw prtormance coma 30 «of delat and tha, hrf, the ans were esd to de Mi rqaymere Bat the manage sop hase the Sam of He noney Ba ee pared ne fd oie ie pcs invest sexy he managenet company Was tneanting isle shor fat bse pac, bok hee ara Thc nd som face eben sa ‘me he parte nln Hae Mui who was wor sant is peronal dy hough FTCA shoud spl same Weak she fr andy be Bap. Bat ica the oye popes ware tht sie ok ot money am wen i renews hd sibs ok ery a late Momerhee who id want sl senate frm the SEC. i Ronco he ee thot he cul rely hese ‘Ae fon a ts os TCAD Rada How won 0. Seah fr lating ro whe wes ervey ee the Chopin Lang Temsccquty. Thnk Fibra’ hard era tats thea a i ab cere a ae Pe IME dar feu wes ret tp searing aes wherever ee Th iran ats ami fr Leger a a ‘oe ate fr finch mas pie the wader tht Lang Term ha done wth pute hanks Bctse none of hah ‘he whote pees noe sa hat noe ade were hed {end lft one ath hrfre, cach wan demain ‘turin ener mon hv, Lan Tem ws ig 9a seas ota anh the pws verti the Tend ha ml gine st thors psitons Tiger eae ies hos lt be prob tpg tas wouldnt he ra bon for Ean ar ice ea ecping ks theory aad and the tbe a had gone sa wih ng rsd even roan he Fak hau om, Lang Tr nn plead fo ein theses hans ht ha fend! he parmers wee tre {the memory of hang remedy the She's sen (Bisco 30 bilon oestrs Wa ey had freed hoATOHYTHAAOHHLENOFHONROOUCRApNUuoROTHUoNOntataNea sevens i ‘sor take t That mans woul has shed hr rams ba en one enamored of Lave Tr tnt they being to ere Whats remy of he Bas re Themes under ste The tmckos hens when Fou ed The arate ese hat they mig ne make it Tho erate atthe en of Aap” Rownel sdted. Theie wne chan Foal apd eres Raving ef themes expend ch ‘alla hon, They mere ah nh rouble, Modes. te mwa porn sy real eae propriety tre ei ny Pb Beachy in we tha Woche sve meshed he weighed three hundred ponds, Unlike [MLS strangely woesden hey vl, veal — ‘Whee ae you? Maton kd No e's down by hl Minehead ive,” Maton ep il i Wh ‘ong afr Mato’ int Merete and Mate wet for sink xa an ave by ENE ad eter ans Wall Inga ads ve ht wer comple at The sl lok ahi “sould hae Feel 0 wintry pata nk Tho appr for te hen erent a ier {isis tey svg! rrmnains snd Rae Gr al dete meth Eo tte ofa nal worked ae it ig vocal pence alone could sop the he They “uye an the phe for honey ogo de stoking inetos seding new ene eng of kes, Rowell and iy ene othe cone on ay wih he eas rh to Hck owt pring ees had ot pres ere. They stg sce eas, When they exes ar ht led fo 1" ot ews Bt the parr huey rode, at even tht Soames The ity wound ila! would be . ftom meting Sorry apt very 8 Wal ee who ade pomes tn wie a chk wn uf free endo ac Lon erat crs ions oe ane of mio of (hase dy afer day eoy sgl ay or week aly had Wan Napa ok whe NAIH Hhenevedien tien (Hit i esting would soya if Nap anyone cok! Know Then 1M calle Scan ahi the UBS nae n Toy ‘Dare anyone our nk wan 0 ves?” Meriwether Gui “The ede are mupxed We hk we have cemendos opp tat” Keep hs compos, [Mad that Lng Ten elev ichad upto Dillon noe cw money aly ewe op TM rel soy “Ms efor fe pre orig theft lon, He new woul eb ‘Om Savard. Aug sa, Mermter ellel Fon Michel the Merl Lych tanker whe had speared Lone Tem’ funda eto 199, Michel ha sie mowed eo Lemon ‘On Monday, Ase fra the mm an ont the Hog Kong Moncary haters whch had bem ging share of cl sok soley topped upping the marke Nor ashe sft net had een expel pr The lal tras tre pen sig arom on Wal Set The Oo ced 13 pi pee se may, Screary Reb, hack thing Sas poor af es nas egonublesThe Wall St Joa + “de ily al explanation: The paper was cn ee rath when tore, "On the main, the nce hee The Main ‘Sect ecru nd, ut nna mares were veered nS oneetened. The eve Set hd ln iter, The snk “esol was of runs nol lang ext hey ne Ba Now they win fl edged pie ode upon ha one dye 135 poi 0 I the scm tar aly ask, Biers mere sly mower be Fri = Aug thiyfine was anu dy” sad Car Sha ‘ue te bond strap Cre Sate Fit Boron So ew er ad, yu hd oes where hey wee” For a find ha bd thre, bu thing more The bd markt ape an ae by um tn the mina sey bt on Wal cel hee ‘eo oc opine dw ch vray hod deny tre Thies quarters of bd La form id the wore h, Mer tree Bfy-ive tine ts toesrathen sion elton tl swap spread Thi verape spy te rte al lots wold eat chro hat S28 lon liner vty na ye Mik. Yr hat leverage cool nt be reds hanes of the tesa the ute no git. The parce wer nan unfmiar lce ctry te mans nero epeton of th Unive” Bat ad apronTHE HUMAN FACTOR iiHOatsnenenedenevonadpenenoncrsnnen® i rider sil, Owing to this “igh gid” a FM, peated it 1 loses atom Stages were cet ser the fe” or coded cin ht Lon Ter ad done ver ch conrlatons “etre the fa shea he end to ben opp TM. fad ae thle sik hat id vorate wh oor evel of capa hat Te ithe way of cl sd that Kegel Bd eo $5 to alc tat Merit mite. Th Kinet explanation at Merete ander the sng infer of Hise aral Hash hy he ee ‘ents. aed the nd mas ‘rs tr hat that edo dee ch ser cash fw probly “lpi a€ UCM, the pre’ managmes company ave the cof er on Sep ut ofthe nner lake to Blumberg. Banc new sere ‘ich published teen bee the lt ives alge hi copy. wate The Wall Se nul wave tp bling eo Long er hess a roar ory fanart oes ramen ie franca smn nil once tht pre he tn ar sold te sve or Mewar an Thong rare byte boeing pres he 2 aaron mow that ads were tur the Ha Ass presumal ad hen a qk "Pope were a the partes to onc aot, "Naw wl ine hack at he ay ater Merete le Nowy ine Servce downgraded raaion debt, This was a hd sgn The lal aders ho eared by anpaken accord cing Brn Cary sacle wee tea thengnee on So Pal, which te dese Erp of Monowwan Sayan tha woul cr dvs The et thing Lenglerm waned was anther Rost. neta the banks signed ein Be Her Allon, Mee uy peae called» sing or Speer 4, te Friday betore ‘im oes sappote of the vss wth Lang Te de stan to now by Mall wae nang the ands Brinn Vian "Whar da you mes, Herb?” one oF Alsons undeings (healing es bss orn fe or ong sch yout Allo ghd old esa nv Ke kangen ar nt joe abot edge fans but shot at ra thay er a che ree ne ot Tk tom, fa ped ie portly aborting US. Tosa mad ieee expe these mc wen OF eet “frets Moreover the barks she pies a tui. Ahh had sured the gps nen was pel eros les the Tee markr nn publ itrng, anne or de ling nth, Silom wa even Sandy Wel was eri th the fs: Nom Arbitrage mit par Bis pening eg th Cir ted for Octher Under Wei sty oer Salomon cmt foe ligaidate, Thence Hagha ha ee 0 ape hate ‘Se by what ened Sans por, jo 0 9 “Shine i aener sh Haga ws afeLong Ter ast Sha poston ty ang yl a suspected thatthe ery gh tas no ing fr aad tetas 2 ho he seem enone th sel hing everyting take. Whe in Low Tan e cma so palo wr 01 big ws WOME vros rely a nk Bondy or fam, br the pastes sar Lome ned! stayed de “Smtr swap spree were widening 9 England ac 1 emwthou a apparent compa ana re he i in Teer ae. Flan wat aig fom igh og should opel have Steck in anys Bogor otherwise, Wal et Irom Long Ter aes ke areer venneenn i i i erm had ben feet seal isa pars ad ee he tse tin of pf. ome he oerecyaeesd find been a oem hook Markets Von Manone mip tacos agai he weak And hak w Meters Mai Set kaw shot teers ols fms bao sellin bao of what hey feed would Bean svc hi Alsing by Lam Tem “As pope sil ou they sane fig tur” Contin Kaplan then a trae at Salomon, teed Noe t atch TCM-to sve thearen™ Astute sway a Langer des Leahy fsck, ae th the fs Comptes were igen Long own pata fr ‘amd a no foe rome when you fare Member may have i he and ws il ut Ber Stans was securities it kepton alt Bearer doping by the day Beat was eteungl uncomfortable bow clei fre an Making mat ter wore, Ratt Sha, nh ape Bear on the fas ahs ‘ser aeons repeat undead th fans ks Ts Shit of any fs ea, parurlydeeties which nse rade oma ans wee ite lay ato eng {ingens wos by mark dws a eng Ss ‘Mike Ali, Bearcat manag lassi pt Lame ee Letnng Bears ee i, Msn ne nef ‘ming or soe fo tei hal band with eve The The peso fom nr pur Mie Rosny tang Tra vor the fang adsl he fee pre fe arc who oe ps ofthe Gosh Comedy Club in Mana ‘Ses ayone hop tie ht ws Ran. Ba eae Sep nes he rep ea) an no sa Kr cmd. Renae re an anyone ba bis ger he opus, ld» co ave hf Longer i ase new mney By heen he The wf ads perma reson ow captain nd et hey eines the ak ab formes wee dings sve The emploees were gut heroes, Citing lng dys een athe ate coe srs lo ‘nwa thy ctl the ptr chs worked alone them neve shard hr et, Wher tbe Rosso he oe esting he safle wok wa wath clenched eth, When he pa osx sar would ay "Hey ha’ oi on?” The Inpesl response "We working on” Av subst for sok ta exiploces ekg developed 3 ke idee the mae pt who wore be employees adel he More ee Sigs anesthe deeper the ow be The prs wera fac, wonied that the eployees woud oe The tec or be dy case TCM bch pa he ok Aloe stare, wan ating Put hi In he ft wes of Sep fo Hest acl le UTM TBs eee tha LCS Seung oma eae cos ps tt ane ti Feesamaty th happens, Log Terns trading counepares ‘rl hen sham dean thr awap agreement ad he ond ‘sei tankeapc. ing th worst srs yt the armen one S81 ‘he po an no ETCM tc typename he ‘Mints hough he sa of 3 hyn LTC some ew he ployee: the finds mre distr proved the nn rennin Thue TRCM a, he fad sould ope. Ba he oan er though corsa perme, net hough th oni of Incest. The panies mre withing og echnical borrow spurt othe ata esos or whom hey were ase "foe ths nc fork eas ot eno, SilNOOFTINNA NOMAD TNA OndneNdtR i | UFUOAAEHRHEyoARoNDonteTeedtysedorens from Het, LTCM pended Das Mag he Chase Mankato Sark, 0 smume Het Ina which tl roughly Sym and age ont al the és mall loa aleay usm Chase, Repent wan deeply wate for Chase “nei Bot now CTEM wasn hack to Chote for $108 milion, to ee Sso milo, Lyd for $7 lina ois tne und for 98 “Scking capil eran, Meriter ile i of Meal ee: snes Seger the Sony ttre Labor Day, Day slam “Mert: Richard Dun sper the la iting though he Bak exponen a Lang term, Merl was ewan sb ore han town deat exons Dun wan thinking st what woul hp estomarkenst scalp Long Tem rk fr the vit Could theme shrug then doe sone? Mel wie so concroc tht t depute Dasleary, te akan, ond BOD NeDenouh, tbe we manage wo ge some at a enc ssh wh ws om fly Sr wth the pare aed em lnk, "Are you ye OK The parsing she al Ponte spine mars that he fm eet poems, a Tid: Dunleney late ld cllegas thatthe parts bad ed eM. and company rl ive tht wth pred wie 2 tre vinci ay andthe corer “We dead of the diy ther ne have oppor een” Reef sash hey Inked was he ean ocnpst vem, JM. wav now Ecksei o won cig the prot having same new J. me he in Jn toe on the ok ste, Meine wl all McDonough ‘he New Yr Fs pce tat Lng Tem shaving ooo fo ner and other Salomon exces had onc een x ‘aed tr noha avd the Feo pcm eal ena Throgphow the eof Auge and ino Semi the paras’ ino grated with hee propet for eh mesa They side Stepped the deste eof LTCMS cath plone sad td ‘hesupposedly bight prospec: for anyone who nested. Mo tas Mendovs we tl psig Ss mon He realy doped ‘Renamer of Beh vests om ha lint ling Jack Wek he sfoieman of Gr Elsi, Howeres, Mendoas wat fen di Shor comeced Michael De she pesona omer magnate ‘hse a ems apc the and ork Te Ri the Tx Tan and sat of ber lowe. Soper, the Bre Ned Lanter ft campaign of 995 Tat sho hey secre tt cae epee ad ket ay Meriwether ser oat Lan Terns ancy ih igh ave worked unc, ha owe JM ier Fon enor Incounsrckthe Zat 9aregan. Sach heehee tro Wal Sees inventors will Kok dow he door of hp Imanaer and shen arden hie wh ec pop ofthe partners tl a seat to dak gTerm had any siperio exper. Once apa the panne Sup tnpy Ray had uch ey sredeti ndsh' ga ‘oy of Paaburgh lowe Crcoich a Meron a! See, (road teal ro aan cao. The prfeore were sow Suhel shou th ewes at te pte fan peal hole, ever the ila, expreed confignce tht Longer 1 rane blog dlr i Seperber and another io "We had teen lal noth dre stat” sd Wire Sharpes Stand profs nh avd one of the anv, jar now Sharpe sapped eat of When Schl Teague Sanford oa oe ney, Share ws aHTVTIVLOTOTENVIVPLODODOPTONORORORPROGOONONOTNEHEDEDADOREODLebocNDyArUnUnnnonsguanenen Denerenturdetedanuocon euanononrardnnanodirnenoediNensqenocopdvonvanensurdaconqnisiececqnesenons Co lent wealthy Chins American as ead inet 3 mon ‘he pole dit wat hy hye athe en ou !nve $s0-malon now al oer S10 Lo Ten cul corral major iveto They nee ray owe he money to ae ‘rom acum, bu Sle vl he sng Lage kc i ‘ould he poses to cal money in sal sas Foe the big money, Merino sonal angle ith He A ‘am a Merl Edn Mahl a Deve Bs Donal ayy ‘Se cain of Chas an Gary Bsn, he an ase a semen ni fo UBS. Aman hes the Wl ret bm nl ad ough eur: at cl the ns Feros om ther dens The Peer poming oes twining te hanks had 9 hose fertrouble. And with Long Tenens desperate the hes coal ord be pa vey dey ha atthe "Tore opponte sy" merely oe eer Inprofubles scene, Lang Te mass hee king Risk Siok ofleing pound 1 3 hal somdng sae though he kes a Glan Sch "Vel etd nde clin $20 se pints aboe the ye on ue cpap frm soe pois year belre.The prise shore em sok market rane ety elaiy double!" he a Hanke fat hs dese eet The marke” at options tre ol The Wal See oma” Ore. Sean pres refed sheer pom eres acs an inde tering marker sb ated to 1730 pnts abe STi tp fom sos pins yar Bette” Ala Casespan tit ened that he United Seen st ot np eas of Ain Long Td het on rial seth fey arb srg tc the ker mer very cot th nt sae od Thar, September 1 was a very hal day. Swap spends upd another > pos ie spreath widened to. Inn aero Iluka ass parent ket eying dee Clas stele ello of hey and exploded anger at hap ‘ened Globsbear Bonde The purrs sot Laugheleen te beavers were agai then. Inthe raking sings the ‘rade woot ad the abl cach eporiehis eas. When he near ha every eae a ant Malis demanded sarcastically, i we eer make mney it for oe day?” Sofa in Sepeembe, shay hadn't ons. Marko were npn sie veyone was ling nae fo Lon Tee The fad was inmobaed by cx shor ras, The sale fh ss mee aig ery tod si, ut Ug Te we ples Mowed whale surrounded by deal pranhan The fg postion pte prt oe nd hey sold ny Fon tg pton sy of sapeie we end pe plating eb the wale ofa heres Fe ee Simon days, Haan ha ue colleagues to double ad ‘Sua tr potions Now esa hate ext pee Wy tearoom the ey th rer ee hy hosed biting schol bare thor apa had fle bale Trealedfom Waren Spector, excaie vie present of Bear ‘Seams: Lone Tees sets ine fe ad die Bow Bs mi Tom hua they ese restored by days eu Apparel, 1M ex Plaeds some of Lon Ten ang panes Rad stared take Thre sein in morse, No oe was to pay prose Panu: Spector na ot he pe of explana He ct ro JM that Bea would fe eng» eam ok at Long-Term’ Bows on Sunday Cr, iol cae Longer wae on “The nextday Sumber 14, Mecvether called Coie. Te Goldman cit ms te fn ence, whe he Bade ae eating is wen snr FM ha» spe esse: Lang Tem ned wae a of money ta hry. Oe ion dele sro longer cough To ave ay hoe the find Soul er ne tee 82 al mein cis apating the New Yok Hit Long Te ashe havo San ml chen, pened ts bos and heap of andes Put the pon of asin as Han forcntyok tess hug every ade Meith and Rint aneded ihe etir bing shoring ha Lag Te was be dt y he ie of Kong Ter ade. The met day ater ers eae coma te Al ert 9 Shoe htrly roan she $20 mon theology Tem UBS, Long-Term bigs investor, wa feng even worse than tear Dani ol, deter hie rm he ld Swe Ban el. trata seth the ney merged UBS as Foe wes Is Selo aa he wart phage, UBS had taken hae fi rs peter fey peren-ehch cm of are Inui never res, “All dss of ope eng, vol ian premion srk Regd nan aren See 4 "This wade wa appeoved bythe UBS group executive hoard al by Mesowble, that Mom, Merve, Rowell ad teay calle on Lenn roth Vander who ra the bond ie ‘Lehman, mest aoe the mers ewes Besng aout the fn nrc dts ere te Wt shot he pon atc eay weap LM eens Pugh hh Irs som The Isham sew na any mld. . Team di as oe sca hah the eng i ha as fm fbn yaad by Chas The 8 {ksh inte, Cl ome te mata cape tise. The revolve canal a the end fay ct, evid, Longer’ equity fl by moe thon hl Ad th bake steve sing hath foes ed thom oh. atthe cacouting pee had oud fy i CC Ran were ote Bk. Thanks to Chase sloppy dating he "ks woul Rave tnd 00 ln to an leo compan. athe pars wer ballon wheter hey oul oro ‘tins hough thy shoe he and we own, why ake he ike with dem Avail wo on comple mater "nun Ley and Rona sony fr drawing the tele Hace thy sk cl hy ope to relent iva at Bear? Krak State, apd Shank were fr fad tardy she loner, ot omt tat Longer igh Be eo ton vss ai prs ery opin, “We dot rn ee tthe tas” LN al cg of the Se she did't me ch ne ae The pene il ad Gina Sh wi eyromiee, en ts anger ape Ret ope Tall 2 Fendi had aay see aul ance Bor ‘rombowse south Iii he had payed Raketball nelle ar lm hs Kegan an” Ings, ea ar fester ha et ice by Salamon Cai ad ae te od Ieparmeat Griman He had developed ttle rae, th lalate Han Merit, hom be Frankly ara hose arirge wi sew at eon A ‘rane snk the rank Gok, be ied nad 2 “Cimon Wall Sits Ln vive floes inet hank, Jove ecrain was with Longe fs paers wee sence a vee my die, had feo un oe The Golda clue ine lobby of arr st Bon Set Ue et mola ha ek dh atta ton ae ap copra iets nap of rearhp anki id tine sleet and even howe rag Sums ee oe rem ht ang Conk Pr the DK “eatin” Ba nthe 194 at a "yesh “Same ror ts wee can sak The ele du of Sp ‘dma and Refer Rta, ier Mas Gal‘a bot orig athe mode ay aulredenor ts and dean pen Goma dicen thats eed ents were well wn ober des ard could age ont {Fthom watt lero het les” Pers decd en ae, sa tok overin the a of 1999 withthe jot chip wel a the bans, The fem ound ack, ut Goin pants apn Hee. Long Teeny dh they eee tcp wha was the eso forte plane sk ering. Mane, Coane ther emp ‘Cone ee nid within fing or wth Me ‘wt ee ad no sol leh al on a ton Seegth He sre opie meen ol at a pe: hee ‘sled ofthe mes anager copay falco 9 Lone “Te seein se ti ot 4 ho the fn exp ‘he ong hae pop ahi st of taken Hewevo Corso ing lon of Galas an sc rn well 2 pom to hp Lang Tem ne 2nd bin [And mal nomi the wel that Goldman at Log Tes Lege capa wa ln, The wk nf Seer sa she end mde wer monte hs an pte Rowe, Msn tn Fa ofthe sel Bed St. Mer wane oo se he ‘pened rate veo he tw frm ying A Gena te Tepper the aap eth gwoe Then hldre ayer and ebjste he arc fo Long Ter 0 ores lig, fan fA he monte fhe Gadan ear alh odd, Tn snd ln ba re rade Wis lame shat fe Tsong Gil apoio be dsl Lng Te’ pr rth the fonda ead, orn Long-Term “Sepuere Sema overed lp 8 dtl ht nan ser ofthe ery same potions Ase ne dy hon he a [pton were wrth a pen! del es some old ade Lang Tem tes sat up tthe tang dk a ere oy sham Bern ply ah sleet Golan erected Snscnmeot nk at meray ese To JM. pater, ‘On Mandy th ay she Cadman asin ms cd gy olay cen oa aston 52 pre? On Tuy 33 feceteah point cnt the fond Syo mllon. Throughout the Find polio ss silar sty Longer deri des bn parolareee mele ater, om Dash wore Adlon shires on af ton Cans ad Ser. Sel Tampon which ing T a rh a8 pe et to Royal Dt, disseny wknd a spc fe Sen, Een there aa ry hich had ade ‘ons bad gan tone, tery oll wae tung sae eye The rhesus had me Freee thi Rend mas they had ‘fough,wenldend ostandrd dheitone sos mol pate uC Hck sbxp ar white she feasts, a acs and ‘en oto apetng ve ery they afer dy air dap The profesor had ror he oi —of which ty were wel sweatin mikey the ae aways Sc nt ‘le pac far om New "hss had rapt aes te 9 random re, even mechanical ‘crm And nthe te snr 99% tbe nd adi cr trav enemy fear apcally of chy sted. The pokes adn deed ths. They had petal the make for 3 cold pricy that ad ever ay ha org the pees scqui, aml overwincngy pctv ith nem We rae Thy bad organ he san as Merivether biter complined the Fe Petr Fer that Gol SeTMA R LALLA UML LLU MW RULW LRU OUI nthe aif inside rowed. Gaiman nd, wa an ete sce ede nn Spcnber tel rumors ht Goldman wa sl ine Lowes poutine in sape an ank bods ware all ove AW Set Infc te gsi drs were od 1 ing rem guy vay bloc wa ely ing ow Why ‘Hn sudden cre fo explo LangTer date Morn snd UBS wae png voli, Se tatty a ry prcdtory Te ae a Wal rec el wa sp Long Teemu eta fe chogh pn cule ages te fund wl ry ocean buy Tack ts srs. They anyone who nets tn wo ke bande eee exer red ting ws ls han one migh sa Theo in Greenwich The parsers” hunkered view of tbe word trade thom highly angele to company thes, partial Shue sich explansons ae tebe forte oes othe eng a lf aburbed he abacus ature hat the nk ee eed wih Grech athe seat hat dS the Wal Se Banks pimps worn at Lee Ter Captal—they wee edu teton. Giver svry hak had any the Save tae as Loner on tee sitions way mae {Sic on i ears epi sae hy Spee te Tne Long-Term par were wel Koo ot Wal Set, oo iby fica oan ash eo ng Terk nd the sling hy bons esa alegre We made ifort he hak wor coms ying to poft at Long-Tom expe or marty prt themes From he tal wave of wine tha they apt om Creenich Ether motion wail have produced the sine, Beatie ile gh fn Loner rade Onc Lng Tes rae oping Long-Term’ poston other adr Leta if Lone Tera the round woul emi“ ou shnk» wri hs ‘sl then you sie want eo sel fe" Goma ae in Tan, =e ae very ler on whee th neta” ‘Wash excep fsck nara, which ae spl are enforee s» mere che ‘radeon priate infomation gs on lth nent bak that abo operate propery honda des, sich Salam sn Gime, pubic Hone of expan kn the some Now” Trt th ean he whe 4 Saloon Golda got win of wh may cues wee runing 9 fam there >and fst Thess wy Cals po now at am aw, hired trae a han ioe shandoned any pees fbn a em Biker ‘Ofemure, if Colman or amon a ok avenge fink sons obenned patel rm Lon Te soul here tale ander ad sate Corzine, for hi pr no dey ht Gan rar “things in marr that might ave end ry LTCM. We al poet rn pons That pre it rt pole or ‘Corin il dey ht Golda rae any ion aya ves ie azn to Longer than there woud hae. Cie the lend of quarters having hea mt sang oe tha aun wa ccs of making uted pb Longer was comple at ssh nal tender my eae trades wees arcane ands Foe ita only hal Ashen” Morgan, Sawn, US, Sct Cac, Bankes Tus fn Morgan Staiey—traded egy voli They knew that Lane Term was masely shor, ab they knew tat name or ater the fed ol depratin, ong Term led ici Gena ek ing 3 hd fore poron, bt te French hank ned rao Ieper peretage pois hove the ae! Abad a twa there mere no eter pata user of equ ltt neta ‘he pre allooned ‘Normally 2 fee mate ors ssh bbls a isfor insane sh Han bed re eo ore the her make, ety ain the rn to $50 a nie, Bathe pope ean i Trough esr someday ar an scrap desis al ove the trod are ling dove, When al hae melee he Pat Teste pre wet fk ty ah ounc, abd be Hunt far an ronwcn Bo egy vlaiy war are rd. No-one had ord “oli in at there mann urls source of spp Ey ity way the amt shoe sgueze,” sad a owed item employee “Thus were nly for ve dealer Aod Ashe frm’ fs mothe ae die beeween the ier few panne nd the athe omen ito oer wine bev, EOTESe panes Hamed lead aad Haghan Tor owing 30 smh mcf Hine an ian nee he Bs of ey be ine fer towond sat other and Schl a Hiiband were Frc apestings The uapps parsers eset ot st bans Ind Taghan’samesment calle fr th sneing, emi arte: Lary had sted thes, only was the sa Clan shat he nk a es aking ing NIE eh Sth, vases ast om the im, He wmode Dy te ching bac, yc expen he parm despa ince br tit Metco had hed is is “Gino her fay aes ther eons se was oly mon fr he pares so sn enn They were ig ot Cheunbearableadgny af ond dar a once sig er ri der no mater wt they gh asompish ate, would Always be Lnwwn for fc ole Longer eapendous re ad {al Row he mot contol fhe group and the ost de Soc othe fm otal ate Ata he 3b ptt esceam who the ang netcame i Si, hr tive nap, t,he as strat and woe hin. WorrigHat Long Tem alps would urine the Sama of my ince al he ha ealy work f= Meron Fepeaely oe eo tare The profesor was wondely human, ‘Me a Sesto, knew tha the em fed, any wo wider thir Nobel Prizes nino. Coin 8 the fd plumed, Scholes made 4 ngs vt ois het Hamton, Onare, where he as onored 32 Kl Bo tm the Af fonly sling hi youth they Scholes neu broke “Malis prospects ha darkened; wall The may bake had coveted tat he might bs cs to Alan Grcempas New that wea ve hep "enti uncer oy he partie my kept the 1 eee nae “! Savio bm len the peso he lus pies was Me wether ot Roving un the Fr wth song and. Ard mo me waned to ame FM "Maree, tpl kept hi nti uer wraps Akiouth kp date shat th en, eyed online, Ronen tad rely sce im ney i shard One ight ound 2 ty JAK wae nig with ety Snes TM. sol winks “fuser ll sall vases "No row Capital Mangere” har bk ap the gry ESS hm ways cher hom vn asf mae ight ofthe tal hindwork Mert whic si led“, hk he ow bi” He mean US. he Sms estor Moke Welsec 2 Bt, Sr Michiel Dela Sau rnc Aa a Tol om Ane Sd ha aed em cle by Langer an ha already ryote the fd. Coren an more tha a Ue Prue wth he sation dapat, es ie or Langer tobe paying oy Tle stil lng coe fins fdas ach ye sesdspealy ying pr rad bs progres wan lw it ever closer tothe edge. The fit tied to dump positions on ts Sanka far the Mensa the Gaiman a po tres ey wer ‘rete nthe sane de. ym Septerbe he ares were ring for thse res of ak fever markets fr Congreso appro etd 0 he IN or tbe [RiP wo apo har of Brash an oe Gren lower ferot ute Of the he, Grsespn a the mtr andthe The Fed. war deeply conscracd about the widening of credit sper andthe Now York ranch had repeatedly een adie 0 TB Tens pli Aloo September +o Repeesettive Ric Pen a Loutans Repisan, seta Geerpan to the fst hat Tele as mene again the onion of pb aS an Ina rene kes Repestnive Bahn at ping se Ap tom's Megan gate on a ware fryer that eae hedge Yds which are ae hl [Cer may be cosines sal decesithe rk vlu of reall ian asasons” The is ms Pathe On Sembee Sos warmed he Howse Banking Comin that Rasa pio ha Tl gal eet eh He lame ke fo oer "bys of eras vasa lane that sce nme yh sree ith “Fe fllowing ay, Sptember 16, Gregan went efor she sare pane: Hednhed the marr Hopes telling Congress ha ae vat of the qesion. sey e agin downplayed hero Fone by rope imesoes ack as hed fr The shar ‘Set some co ks bon: Hed ton re ron es PTCA late bythe who lend he mane.” Gres ase, Gen hat Uompteos lenders ha honed the natway he fond hd cole that Greetapa wan citer atl oa kh ‘emily dest what he ad eas Scesary Raina easy Know ht he ull ae ad met dalled many bares seme of pen, Where you've a ea ean eas good ahs” he rl the ph“ mb vend cet Finance often pci ots pies te rls wth spi fern Log’Temn' cere wee een the thet le ‘temy hed mae the cur itt woe Wh ore ‘ho def racve wel ein the fo of Fall by kde Longer cul hres opal he way ‘er. The bal wigs fo nae Loner witout 29 ha ir a nl he ft operat i up othe eg, Now i ‘tae, noshing would ‘oc suprising the Tene wire hoi by what they had vero "We had oie they wo hve oles pope trre known fork managemene They had wu hey degre 12d on Nap the ctl rk ange wh B50 em ‘lng th abel Po wn aly ly ey igen fing onl hae pt Wall rec in sch ei Lever men woul ie gan he fining aad she following tarred sock bbe, sre sig ha the cs et arund he and was sighing General Re, am nora sysny tht we the no me ‘maketh arguing aout wero pa i adel ery Tony lia the Londorbsed He of Gavel Ro der Stes subscary, wehich a inancel 9en sap wth Longer ‘etwaking people in Tyo them te nigt pres eli Ses the nd ren J. Morgan, whch mat offeng. apt to Gre with and wife hugh expo Lon Te tare for pose dee mth the ere wa og eal Inv Morgan exec confi: Rano dst prtNee eT ee OT TEC M ty Wong Tem id coal eset pati frm sing il xp ds on ache Fp oso counterparties In ang Ter take ona of tse hod ee sont wold staal i tera dlt nev oncof he the which sored sore Sq twin nin se Bare tach even come krapey ma cid an ac of deta Lng Term yrs troll even memon the Br They abl he deere Inv shldte yan, Ove lager wu ok ater" What there ‘ewig hs yang, Meinthr he he a es a aah tse me Terms pogenir—tad tyed fe the ec foo Ban Wednesday epee Salen me bo the act The hank sent Ro Aan, Sans ead unig te xin, An Catan ho ah ng torte fam and are Weil Sandy “Toy expo oa Gran andor he hak in wide tanting sting However by the tet Saban gro seed, {ies ert lout ste rang oe wae Sven Hagan ok thom to am ofc and bly aonewced tar oly ne tee Inn on he ges Ke aed ne” Be med pen sett Well Rowing ss ope aie, ‘San wane eo campromie Suomen hy sng uch, She Thomas Mabey nd Pos Hin Byrne Hagan cere 0 Be ‘On Tharasy, sponte othe tr a it S45 malo: on Ft fy, Soo millon, The Ret week had stopped om Man. {meter dapy $45 mil Tandy, $7 mon. Wea Agr eptember 16 neal a: 132 lon Like 2 Wie nee the hse gave no fs, Hagan went nc the es Alo a they had Happen saree He sok’ eter he as that Lon Tens sein had wrk The ‘hm he ecovered afd hime US. map spent a hed opt Haghen ter lame Wal Sie opel Goan fo ‘ging po th real Fd Though fae at Goldman, the pater were guns counting othe bak sana Reseed does were cling “allman thot the week wth growing depen. Despite L'il pci, et rad be mn Pre hee cate wth Gollan on Thun ring, Sepeb 1 Cre an Jo Than the ato’ angle ee Rowand so many words, "ou ut ast chance [eter that Thundny, Mesmether adie Bil Donough of Longer pl onc he ard a ney that dae st proftallmonth Bate proft as ptance, Sil Aled oo ae, Longe rae Sy Bl stmt chink thi ony a pw ince ‘ae Inca ter mig ego tor chu, and Sos mi, hae Log Tem aden cle thm at well stl everyne ee om Gol toni Peer Kniss for, a talked a hat very momigs Bafa ha vrata ne ha od lla, be sun's. The thers id fe, to. There fons Than did't thik twas pmb Thin dd otros tv be ws think piae al apesances, Long-Term wat freee unde Bat Goldman dis sop eying. Krav and Bae spoke eer ‘ore ine thar da The get tb Heck or Bae wan hat edi ike Lg Tes completed paresis HeOT ? fle des ofLTCM. ate ha ole sown arin dees {sporty for sch reson he ad ne or ene he’, Bot ifiewan ats mater of bying Long Tem ptwhich 00 tras pect beaten dwe-—sthot keeping Menthe hi oF company, tae mie wok, Bole tol Kraas. Refine chi thought te beam oak aout Bhs a Goldman ly tad or Long-Term spre lng with ATG, the ner Meanie Ara prt thas poss 0 Corie. Tro tutte dy, ColdnanIxked arb he non of » Behe {Gdn de wel ne wy aig ee fn Langton was cing die The Fm ge et ter om Bea fl sting neon vo stop clerng belo 09 alam clay the fal tp Before ein ol Now 5 ne ‘als Ch. Though Lang Term el ht aly coh dee {loan fcy any, the pairs wae to hr Chase 94 ‘he Malin he rae bane called Dav lg Pha aleady ‘ek Hs ack ou for Lon Tem by sing Fest n- Woul be die sgsn? Pig banker ks hac haf Chae andthe er sya «ate members dl and they tight no et the money Bak Bas ‘Ghse dd fond, eco elias Moroney wa est ‘Lan Tem claps might eererate al oer Wall Se Ad Wal Seee waa jor cn. Calig Wao hp, Chas cht ra, Mug sad, “Td ink we hve ay hoc ‘Mean, Lang Terms mare were ombing gin Mey nian nen orgage spread by pou, i bond tes. The Dow fll8 ps fpance wos fee velar sen iday evening Rofl called Monga’ Peer Hanook hn Ibn Mamaronsck, the sme nas Ronen td hon ch then atended the same cht as Rise Te wally costed ‘Mbvajeur a ily ged he ma ped that ear wo pall he pag and cones tat Long Tem gt not savin ol tng ek Long Tern wa ning ered ne an ers wee ‘Ring exacerbated by sumo any ofthe fae or wy cx ‘Om a whim Roveneld sages tat she Morgan banker all Thainat lan. sar os ishnows ha wash ist ine anyone Aad ake she hanks connate hirer Hancock and Tha spoke tae ht Kins thehunker spearheading the Glia forth taken i sna het go Behe concer Nea Pia: Ati ‘Smstn, Kraus dake ou 2 py hoe an dnd Omaha. He mae pnd ot some mum for ea Ballet nd om Tne png ony sd Rage wont ack 1 Beethoven, re ohing wo ht wil or the che. Then Bae called. Joseph anon of Genera Re Bakshi’ son he inane egpton, ore at fa ht ave enn They my the ‘Mlenie warms. "Asse mo acne a prot cole or make a margin al Accept ess” Th be Tepe pane for Sere mss Bl Gtr fl gr that wa nin week ay or akan we the meer a ks ‘Now he dream was lve that Halt would ee Long Term — ss he had, cinema, Salomon svc yar cree None, Cen hoot the od shld be ough int he oo. He called ‘dona who alin spe withthe he ter barb To pant hankery i tht Long-Term rubles were depres marked Mereoer he ere ed shat Yonge fae ‘ull hove sel destabiing "Wh nah fers mind Cavan fil to have Golds she Fed on Lamgors pio, Meweter ace tat te Pe “ho eased stray petra have Lng Ter i recy. Thy Stay, Malis former seal Bane, cle uooveh and nied the ed wo Grn of ous, hon hing abou Long-Term or uh etd Kao hate Ne mip tpi els {how tharding so woul expe the Fed ciicom. Argun fare psi port goin He dies» publi pace He Irs cllcine when he cin wel is power dere. by reels steno at by aylingorer do bing Most ess in SkDeneuhs md, a tr some pate Wal eet ad to orchestrate sl, Hea Jon Whee the haan the New York Fe tled abou who could Jt Once, Wer We ton of Can nv Gas Ley of Gada col! have rl Wall Sec Acetuy ayasos,J-B Magan Se, ba ple he ptDAMA MULL HC) HANA ORNATE HAHA AHA LANE AT THE FEDsls of iaesment Now f LongTem lst een 9 ere 1 percent ‘mee oul be wpe ot the mage he os would’ he knows wai afer ‘Mins lr he syrdiate hanks, even sun Ricks fh de honk ad hg LT a bt ts ‘rs apa aoreachabl, but be had made Bs sate Po, tthe emer then ‘Ne Moran. ae ha oti, ws hk rhe Merl which had Brow wel rte of he bee antl spent Monday eying er po speed, Heated mvc via ope i he aero find he cat wu iia and Rone, wh hing through te Rosh hana boli. rhe porli—was there gone ho rhe! Mertther onan! remarkably hn sine thems” he aed orf. tl esha Lng Ter tes ust st pt the tmp roth ome He TP aanted the fro fe. He was ke 3 3 fan He hoped he i the Pighe Tho thet man Bad sy ne ‘Gectich here J iy th fend ied wen oer cr the undenn RNee aNLnRakes "WhatdowedseihW?eJAtokeal toatl Reta pokes with hei ews mak Sompany-hich afer dl mo want!” Iehn Mead a Ith Capa Mac prtarhip ut LICP was meth hal inthe imo thts Merete Ftd was able> fe him I he Src eed alt acy the fad hy selon seen baka 259 rnd go ahowe $5, Cy a Cong vo wating |. 05h Gol Sel ‘ha fae Goes adc the phones mee i the people he pares had Iete sre that the ‘percent below it evel af fe thatthe Soo malion reverb reo the dy fe he Tog. Rankers Trost and Deushe Bank demanded scaTroms the beokem peppered them ith at rs fers tole tent andr ober dg ands would oo, What would hago Fading dnppears ad brokers cn Tate Sturdy, Jose Fm, Sksponsible speculators inthe pblc eye ad forthe way i {al ensued. The maoey was lost, but honesty Ee Reened Long Terms manager sacred tc wie collin hha goss nay asled-—aome Commitee, had this nberted Rovenfeldsporraio as well. Worse yer Rosenfeld had eda the kl a reais of i wile SRevedo tke the eck ste, Whe il Melts omer wags Salomon Bren clle 0 ee here was 390 ‘ould Rone agonded yh Jt snd mone. ‘esing the house. "This a pesoal aged” # endo he me. “The fo’ cols gor wide coverape aly none of ypu the par Pies the Brkt” ad td thar outrage was mingled with Shock Hesdne writs a fel day wt the fed es ‘cle, Merton's bomtown paper, The Boston Globe, chimed in with Fs land Spec Fe fora Long Tem Problem” The pres aa ‘aly seed on the fall unainess of the Fs Helping to Bal xt Wal Suet-mogul In Pepi, te Taper piney de mand. "When Hedge Fund Fis Al setore Sorte That on war ore disuse the stain tat Long Tem’ “re Though acy conceding tht the mola ale, bested ‘ake oto wo to pn evemore dakota sophtcted pal The non tha eng om ay fr pon scaler ade make tlephone call and Meron Miler gate dhe goon gl fe bnerving tht Scholes had wow fund ot for Bie how dangers nan oy to eat the masher’ Ar lea eds, es maintined hs wi. Refeng to duck, the Nobel urent pe the eves tha her than we, Jan ekg Arr JN, he neve poke publ shoot hi feline and dst Ibe. Eager to Bethe gh a heii bythe seprers ‘aged ai dos he eng ade rest to hs psn ay ‘every ew therm cepa er the ence, Sure tse ad sid Allon, he gr leaps be afc Metin of carey paying he ih, he had Tike Jt bans the sae rom Thad Bsns Bi ae hace woul boners Te Federal Reserve rts inert eso Tos, Septem the very day afer te bau. acto de ot og ad ete the adele 23 elo more than €o percent Andon itwen Recaptae wih teak fli, Lon Tem coined ro plume ike 3 parachute wh yaks thei ord as Kepe aling Barney schpine of the new coronas age thar in snatched howe of Creech The kt soc lam tha ad come to Longer roche wake oth aay Sevor frcame oad with Wall te ces sponsorship of ee fade One afer another the banks dialed heethe wings rand oer Begs fan) id have oe Ey al Wal Sera now trai af Lampe clap te Bans tt ad ous in ton be da iat tat was thee pe fe bank expe tam Long Term’ egy, bot ats eles Komansy and Allan fad taken uch pie a Shing Meal propor rading bu Merson ars fills mmr ating wold come under pressure; Merl key A tony nerve ct cots air 3900 pe lel inthe ed deartnet By mid Oxtobex, Tern opto ings fe kang banks on Wal res were frepening roube verses for econ tea nal that ke ‘lS allied, and fom reads narewe. For the fist ine it Ino, fond arkrges ae ssa profi ny Grech, The pre ured sound fe sic rot that ad ee y tae meters Capt wih se Apo ha ost he abloas oe a Ss tala aly stopped xing, Th ‘ rssged and went ro wark for Senor John MeCains president Campuig. Dovel Napa Merely rk manager ook the fal for Meri lose Replied, he went om lange ave ne Te Ciptal for ht 2 ogre, Goinan lt be knows had then waked agai on Servet, hl Bele the bale wat tad Corin war deo mn athe oto fms barker witha ese fh len th lager word in st tty tha honored only pois ands orp wb el om be sword Meriwetey vil who ppd nt echoned all ‘UBS ase in aes devastated hy lasses oy em ts {habs aout the dubious anger warrant For ling oak oncern the wey top, Sila was fedAnkers Teast sued catastophic oes in Rai, whee th ‘ther ering marks Apparently maleng + machery of thes edo sellout toa German va, Desc Bank, Though eed fie, Newnan, who ad nel ced the Log Tem rou {eeured3golden rsh for himself timated a 09 lo, ‘Sandy Wel ae ou sys seemed ozo and TiaelenSslomon merpd on cede Leman Botts wich had een pled by iy recneed, Chase Manta ® rpid nd came out me Inde thanks 0 the reer margin call A of debe ten Mow of Langer xsd iets i ou aed sed oe ial by the ced earn of th cpt athe endo 1997 Same thie he mesos who ad ben cky ough ove at waked Routan eal mb vests ho a foals tel var one tach “favored ner Koons, chairman of Merril who About» down ig bk ade Fst Rogon, and Dedner—k mon) iy sgl The mod esas the oe ers nn way ted fist four bighy sacl years, Long Ter’ fal, cumulative lost ses ageing Through Apel vo9h the vale of dalla issn Tenge ude y10 By chine ofthe alot aly Se iB the arn fs te ese wer eve the pene fund cert se ne wth hie Qe had ot he fans employes ike thos at mos Wl Se fms a got Fowcs ad e The fond and wet down te dan “We thee bw a en wong ep ten te ark, Bu the a tet hao sey wat py gies Aone mtg OF pa ert and af, rn enploye demande, “Expl tar why we shold ‘sen here an not forking forbs" Rep a parser, That ‘mon fete fs, Lom Ter sf hy three empl fond ard small wera pakage, but ee thie wae cat for mich JM & Ci exacted 9 pce Dep mh thy sepa» ple never toy ‘Once the fad stabil hep oud eee an on ‘py fn. Though thy pred onera hae nd; ee hands tered by he ee Wal Se se nt mntored he and’ ican ve ad mach a ors woe ber dapperof for dragging bao dipach some of is members London eo make sue te unig abe el mo ie. hems gencrovs banat step, Syanoos—in tu fo fe the Year Orherte sey weve ented He he hed ands hey dered the pariner o clear public satemens with their new bones, ling that nowt se pter tat oun be ated More resin stl peal 0 rm that had rd cf on ty cle nono ey the terial Revense eric bunched cealoftheparmers cae to eve th Brand and Higher should go nox oly storey but rig Spt we catwork, Mernther herd cmplais about he om Tlowkin, Em Modes apd Mule But he wes single pared to del mith shem J el ew mcg ad ted Flare he mune bob was soo deliberate loa 0 i Tote coors soto fa top tit, Hawkins fal teand or him. JM. always spare with wor Sours Then elf ihe om ete year following te blow, bap pres raul nd withthe consort persion) he Alot mere able ap Janene ay Ara where he ook op ing x exc, with the benef of his hard-won Grsthand knowledge, Merton ‘asta a» conan isk management by JF Morgan at Morgan Stale. Mullins, che central banker, decided on sletled notorthe dared partners contend dappeaced fom Meriter never doubted that be and hs coe grup fon Sa ‘would ey to elie rey a do agri, Alas 2 dy and is ale pan sion, They ental pene cad 1M, began mater rede wo mating hi ext ecard he ems deed Do thre pays pony think they can sdkem themes one of consort bankers wondered. Clr hey dil in he ne nd speed on varios ecstasy nore nde lear it what a they were apap foe. ML 8e Co. peel ered that ether he lveape these of thc poncho bad bern se cat contig factor they dei ven tht hei ase rs. gy had oo He Rat cing ae meting the paStorage Angst flowed By Bost ms pends on loner tated bonds hed wide 9 eves hen cul hae Schlescorled frmess: wen pit fl ers and bane of ig he Scholes hima posed xt tik Even afer the i ste. They hd brn done Feeble crt peer orm sch ke Year tive than” Rosenfl explain aftr the cash,“ d Seu alk, bor inal sory epee ath expe of reviews pe world have seed ple : "whatever thy had vaed om thea dedi, asta they a ele tebe, hat spend wee tut now wn he tine ois, ha opontntsbad Ter) perception af eet epg ad bee» ie oro. The vies eggs that bh fre were a works Long-Term mt faded he Hee, andthe ef of that ent wa seyIe however sligh et pes bad Longe ks hat adore South Kote, a The Ye invlemert wae ied sta ts aed, Bur te fuk woul nat have Tp ct, Longer sy wo though note thik apes ed. At feoshnen cere + pce wool Be incre er Long Te te Fe dco plead and petape ember by the Fn one ok a he Lon Teeepsode nla presibe + wanqulice The rake of # akan see sme nef acon ve lng tern But the Lang Term Capel ese [aed inmance br the ltt rat or she IMF ay oc le the sing nd lo, Bi cn ral exten i eso, Tan ‘decade of ponperty and buoyant final markers, a remind that ined the of fre siate “To e ae,some orl ha bre ben crested hy the Federal Rees Imelvermen the Fl chet decared. However be ed ha 50h red by thera cous orton ten psd suddenly ito bak. ie Fe hind the, nd wishowt ped. Peay {ae hank and ahes woul bave sled mare severe lomo rate was hag tt pend over allo Wal Set was bay re At some pot the sling wld hve tenet problem chi, having rn led by the ae ning rig on te Fd on? On blanc, Rraghundetandable gence panky conn’ a Sepiember1998-reetaly aguante ny send te mae ed dove of iin Slane, "LTCM it slow to gt of Boies ame you CGreempans more sro and lngerruning error has bee consent shag ofthe need Kr replaton and heer dla twsh regard 0 dere prot, Dele othe bunks aby Topo thomsele efore the rt, Greenspun cle for es bur dene realty rege barely sx mot ae i.” His Nes ‘pposton to ethane dclnure—abich, becuse Hallows fe Stor tobe throw watchdog, nce he ft rn of fs ial rskete—sred to rmnd ne ofthe ety Gicespan who, Tt Av Rand once rte, “The bass of replat aed sl hae marke nod be defended by sr lcionce hat he worked so wll wth ead to adtonl sec "es hu nat Ben ale odo the job wth tsps to deraie con alancehee rik hey ae comply ffl with oan to de trate sak. Some ofthe sparing sndods ae beg changed es rerum A the ne of drain roms thi dfn wl vo batt argument to Be made for eating aul expose, Rep inns ithe mount hat Chase Mashata aed ata cae Ina for go ean: nk ave peste aoa ha te ofexpvare that hey choo as longs hit exponen the fo tvernment eels adc for related bs sch oak elo eaten aporade li okt. sri of rae Eom saan ther emerging ares: $436 Decl ads i develop Japanese bo 3 Foy pts ach a Volkswagen and Stl $286 ion Send Poss oo sok Sao3 lion High on fon $1.6 lion ones ta 81.9 Bln Swaps se ve Bs tnt mel at he a very ie (One Resour of baits) Langer wa eles Profle thatke markers wo Rs ad Septem hee he mec sid they shuld Te poe hi hat mode of behavior nel cul el hem what was 30 trdes led aes swape resonable Tis the ue lesion of She they ran lacks and een bore pected to onlate withthe precision of sine waves Prices and spreads sev they else Die ae pedal dwn othe de Russia ent Row traders wl espn eo Rasa es ie sil Uae ie, mart re abet no meet se le a indefte ondsin, ett does the clement cance in Me cl No seledoubefempered vem fete of peace check the at shey wagered sock sagging prevails at vrtelly cer ivesenent Bk and eding des Tic tes Long-Term bi tae, ad i eng le erode syof "Mri Lynch ss heat tk ae help mate “sth et tines orp ith est em ty othe pt said o quik hare ven hd ron—and quake oer