Long-Term’s plan was to return, at the end of 1997, all profits on money invested during 1994, its first year, and to return all money (principal and profits) invested after that date. It excluded the partners and employees and partially excluded some big strategic investors such as the Bank of Taiwan. Jimmy Cayne, chief executive of Bear Stearns, Long-Term’s clearing broker, got an exception, too. Others demanded to stay in, but Long-Term turned them down. They were naturally angry that Meriwether and his boys, supposedly charged with watching out for their investors’ interests, were giving
...more
