Tag Archives: LTCM

Grant Williams

Math and TTMYGH

I read Grant Williams religiously (and I don’t do much religiously).

I was pleased to see Grant’s stab at perspective. I’m paraphrasing, but my recent rant on JPMorgan’s legal fees (here, here) gave me the urge to give Mr. Williams a high-five.┬áHere is a good example:

  • In 1995, $1.3 billion was enough to bring down Barings Bank.
  • In 1998, Long Term Capital Management required a $3.6 billion bailout from 14 financial institutions after losing $4.6 billion in less than four months.
  • In March of 2008, Bear Stearns received a 28-day, $25 billion loan from the Federal Reserve in order to avert its collapse
  • Six months later, on September 15th… Secretary Hank Paulson (or, as they were known back in those days, “Los Pollos Hermanos”), crafted a $787 billion bailout package. Continue reading