Hedge fund fallout & Other Merry Weather

[Brad De Long]

>Brad De Long wrote:
>
>>But Bear Sterns and Lehman refused to pony up their share, no?
>
>Yeah, they did, and that's interesting, esp since Bear Stearns was their
>clearing broker. Lehman though is always rumored to be circling the drain,
>so maybe their absence was understandable.
>
>Doug

But this time the rumor is that they are circling the drain because of
their exposure to LTCM.

People are now announcing their LTCM exposure, and either the people who
are announcing were not the big lenders, LTCM's portfolio was a lot smaller
than the $80 billion conventional wisdom guess, or some of the big
creditors were not at the table. Perhaps Nomura?

I find the lack of transparency alarming...

Brad DeLong