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When Genius Failed Chapter Summary & Analysis - A Nobel Prize Summary

Roger Lowenstein
This Study Guide consists of approximately 39 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of When Genius Failed.
This section contains 736 words
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A Nobel Prize Summary and Analysis

"Whether Long-Term wanted to admit it or not, the secret of bond arbitrage was out. By the late 1990s almost every investment bank of Wall Street had, to some degree, gotten into the game. Most had separate arbitrage desks, with traders specifically assigned to look for opportunities in every nook and cranny of the business. Lured by the scent of the fantastic profits being earned in Greenwich, other banks were reaching for the same nickels as Long-Term. Inevitably, they whittled away the very spreads that had attracted them; thus do free markets punish success" (Chap. 6, p. 96). It was harder to find good profit opportunities because of the number of people doing arbitrage trades.

Meriwether was encouraging his people to look for new territory. The firm with more than five billion dollars in equity in 1997 had to find new markets. They began...

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This section contains 736 words
(approx. 3 pages at 300 words per page)
Purchase our When Genius Failed Study Guide
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When Genius Failed from BookRags and Gale's For Students Series. ©2005-2006 Thomson Gale, a part of the Thomson Corporation. All rights reserved.
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