The fallout from the bust fell broadly but—as is usually the case—unevenly on various of Long-Term’s investors, employees, counter parties, and Wall Street friends. Herb Allison, who had done more than anyone to save the fund, was soon resented within Merrill Lynch for his role in Merrill’s zealous cost cutting. When the crisis passed and memories of the panic faded, Allison was blamed for overreacting. Informed that he was not in line to succeed Komansky, Allison resigned and went to work for Senator John McCain’s presidential campaign. Daniel Napoli, Merrill’s risk manager, took the fall for
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