John Meriwether

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John Meriwether

John William Meriwether is a former Salomon Brothers trader who was chairman of the hedge fund Long-Term Capital Management when it had to be rescued by a $3.6 bailout from a consortium of international banks and brokerage firms.[1]

Background[edit]

Meriwether was born in Chicago and grew up on the city's South Side. He began his trading career in New York at Salomon Brothers on the repo desk, and then traded short-term agency securities, on which he made an enormous profit for Salomon. He then took over the bond arbitrage business, then in its early stages. He made partner at Salomon in 1980 and continued to make money for the firm.

In 1991, however, a trader on Meriwether's desk tried to corner the market in an issue of two-year United States Treasury notes and the violations were not reported to the Treasury until much later. Meriwether resigned in the wake of the scandal, and Warren Buffett stepped in to clean up the mess.

Meriwether later settled with the Securities and Exchange Commission, while neither admitting nor denying any negligence as a supervisor, for a three-month suspension and a $50,000 fine. He was still wealthy, but he made his real money by founding LTCM in 1994. LTCM collapsed in 1998.

Education[edit]

Meriwether received a bachelor's degree in business from Northwestern University and an M.B.A. from the University of Chicago.

References[edit]