Long-Term Capital Management

Tuesday, September 22, 8:30pm, the Federal Reserve Bank of New York (Fed). It was a meeting at which all of Wall Street's biggest power players were present. In attendance were Sandy Warner, chairman of JP Morgan; David Komansky chairman, and Herb Allison, president of Merrill Lynch; Frank Newman, chairman of Bankers Trust; Jon Corzine, co-chairman of Goldman Sachs, and Robert Katz, the managing director; Deryck Maughan, co-CEO of Salomon Smith Barney; Allen Wheat, chairman of Credit Suisse First Boston; Philip Purcell, chairman of Morgan Stanley; Jimmy Cayne, president of Bear Stearns & Co., and Warren Spector, deputy president. Unlike previous gatherings at the Fed for which festive occasions were celebrated, this meeting was a grim one. They were there to help rescue Long-Term Capital Management, and unregulated hedge fund, which was threatening to spin out of control, taking the global capital markets with it.