rgemonitor.: Fed Officials Fret Another `Russia' May Occur: John M. Berry

John Berry - a leading Fed watcher at Bloomberg - tells us that the Fed and the BIS are starting to worry about another systemic risk episode, like the one triggered by the collapse of Russia in the summer of 1998 that was then followed by the near collapse of LTCM. June 4 (Bloomberg) -- Nine years ago a default by the Russian government on part of its debt caused financial markets around the world to seize up as investors rushed to shed risk. Today, Federal Reserve officials are concerned something similar may happen. One major casualty of the 1998 crisis was Long Term Capital Management, a major hedge fund that failed. In order to prevent a disorderly closing out of LTCM's complex book of derivatives and other investments that could have done significant damage,