The Lessons of Long-Term Capital Management

Jim Cevallos: In 1998, officials looked at LTCM's failure and said, "The game's on" He says they repealed Glass-Steagall in 1999. They wrote the futures laws that you could do swaps on everything, he says. Then a few years later, SEC took away leverage requirement of broker dealers,Cevallos says. The Fed didn't cut interest rates until after Wall Street took over our balance sheet, he adds.

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