New York Fed President Says
                   LTCM Is Nearly Out of Business

                   Dow Jones Newswires

                   CHICAGO -- Long Term Capital Management is close to being out of
                   business, according to New York Federal Reserve Bank President William
                   McDonough.

                   Speaking at a dinner here during a conference on recent global financial
                   crises, he said the 14 firms that put up the money to bail out the beleagured
                   hedge fund have received most of their money back.

                   Mr. McDonough said if the firm is to continue it would be under another
                   name -- if it is to operate at all. "I can assure you that [closure] is a result
                   that pleases me considerably," Mr. McDonough said.

                   Mr. McDonough said the current management team at LTCM is fettered
                   in what they can do until they pay back 90% of the equity some of Wall
                   Streets most powerful firms put up. Mr. McDonough was pivotal in
                   organizing the rescue of LTCM in the fall of 1998, when it became
                   apparent the huge fund was near insolvency.

                   At the time, the fund, run by a number of Nobel Laureates, had $120
                   billion in balance sheet exposure and $1.3 trillion of notional derivative
                   exposure. It was feared at the time that the failure of a hedge fund of
                   LTCM's stature could roil international financial markets.