Financial Times FT.com

The Short View: Moral hazard

By John Authers, Investment Editor

Published: September 15 2008 19:12 | Last updated: September 15 2008 19:12

The Decade of Moral Hazard has ended, as it began, with a weekend of intrigue on Wall Street.

Ten years ago, the New York Federal Reserve brought together the leaders of the biggest Wall Street banks to decide how to deal with the stricken hedge fund Long-Term Capital Management. It had come to grief in the wake of the Russian debt default. Credit markets were frozen.

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