The LTCM rescue was a private recapitalization, not a taxpayer bailout

Evidence

McDonough brokered a meeting of LTCM’s largest counterparties, which concluded that a re-capitalization of LTCM would be less damaging to them than a “fire sale” of its assets. Fourteen banks contributed a total of 3.6 billion, in return becoming owners of 90 percent of the fund. LTCM's investors and partners were not "bailed out." They were left with only 400 million, a mere tenth of what their holdings had recently been worth. — Donald MacKenzie, An Engine, Not a Camera, 1073

Categorization

• XREF: Common misperception is that LTCM was bailed out with public money; this corrects it. Connects to 2008 responses.