What role did the Federal Reserve play in the LTCM rescue? Why was the Fed involved?
What will be an ideal response?
The Federal Reserve was concerned that the financial markets would overreact and question the solvency of a broad cross-section of international counterparties, thereby causing liquidity in the markets to fall substantially. It was also worried that large bank failures could cause systemic damage to the U.S. and global financial systems. William (Bill) J. McDonough, President of the New York Federal Reserve Bank, called together a consortium of major banks to explore the possibility of a rescue. The Fed did not have jurisdiction over hedge funds; so its role was more as a mediator than the lender of last resort. A rescue agreement for LTCM was negotiated on 28 September 1998 between LTCM and fourteen banks and brokerage houses. The Federal Reserve System did not advance any of the rescue funds.
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A) value con?ict B) ego con?ict C) moral con?ict D) need con?ict
Using a ________ targeting strategy, a company develops one or more products for each of several customer groups with different product needs
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Sunnyside Co.'s comparative balance sheet indicated that the Equipment account increased by $112,000. Upon further investigation of the account changes, it is determined that Sunnyside purchased equipment totaling $196,000 for the year. It also sold equipment with an original cost of $84,000 for $22,400 cash. Assuming these are the only transactions affecting the investing activities, Sunnyside will report net cash flows provided by (used in) investing activities of:
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Indicate whether the statement is true or false