Long-Term Capital Management

Long-Term Capital Management L.P. (LTCM) was an American hedge fund which used highly leveraged strategies. In 1998 when LTCM was on the verge of collapse, the fund received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York, due to fears the collapse of LTCM would have disastrous effects on the larger financial system.