100 Economics Question of the Day: An Intermittent Blog: How Money Moves in the Real World?

Tuesday, July 11, 2006

How Money Moves in the Real World?

From Frank Partnoy's Infectious Greed, p. 252.
James Cayne, the CEO of Bear Stearns, a second-tier securities firm, was so taken by LTCM that he not only agreed that Bear Stearns would serve as the clearing agent for most of LTCM's trades--transferring money and various securities to the parties who were owed them--but he also invested $13 million of his personal funds, even though he had never met John Meriwether.


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