A Bailout of LTCM's Creditors

LTCM avoided a fire sale on long-term assets, which helped creditors and the rest of the system more than it helped any investor or partner in LTCM. The thing that is often referred to as a bailout was really LTCM's creditors putting money into the fund so that the positions could be unwound in an orderly manner. "We fought hard with the consortium to try and reap whatever value there was," he says.