The 12 Most Spectacular Financial Services Failures of All Time
Long-Term Capital Management
The hedge fund, launched in 1994 by Salomon Brothers alumnus John Meriwether, used high-risk arbitrage trading strategies to earn big returns, amassing around $5 billion in assets at its height. But the firm's strategy came apart at the height of the Russian debt-default crisis. The Federal Reserve arranged for financing from other Wall Street firms to prevent a fire sale of about $100 billion in assets.