At 5:15 P.M., Allison called Meriwether with the terms. Long-Term would be getting $3.65 billion from a new “spoke” representing fourteen banks. In exchange, the banks would receive 90 percent of the equity of the fund. Long-Term’s existing investors would retain a 10 percent interest, worth about $400 million. But the partners’ share of the latter would be totally subsumed by the debts against themselves and LTCM. In short, their investment in Long-Term—once worth $1.9 billion—was totally gone, most of it lost in a mere five weeks. The details of the new arrangement had yet to be
