Problem
The U.S. Government Accountability Office (GAO) does research to support congressional decision making. After the Long-Term Capital Management (LTCM) crisis, the GAO produced a summary of the events of the crisis located at www.gao.gov/products/GGD-00-3. Read the summary and then answer the following questions.
a. How much of its capital did LTCM lose in 1998?
b. Why did the GAO conclude that LTCM was able to establish leveraged trading positions of a size that posed systemic risk to the banking system?
c. What was the recommendation of the President's Working Group regarding the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.