kaal:claim:3405660-011
LTCM reached systemically dangerous size because banks lent to it without regard to repayment capacity, and in doing so the banks endangered their own existence.
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LTCM grew as large as it did because banks lent it money without regard for whether this money could be paid back. Banks put their own existence at risk with their lending practices during this time.
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failuresupport: arguedfailure: lax creditor underwritingfamily: systemic-risk-transmissionsystemic-riskdefirisk-and-incentives
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