Long-Term Capital Management's collapse in the late 1990s was caused primarily by:

Question

Quizplus · Accepted Answer

LTCM's collapse was primarily caused by the 1997 Asian financial crisis and the 1998 Russian financial crisis, which caused a significant decline in the value of its investments. While there were also issues with the management and strategies of the firm, the external financial crises were the main driving factor of its collapse. Government regulation and competition from investment banks were not significant factors in LTCM's collapse.

Long-Term Capital Management's Collapse in the Late 1990s Was Caused