New York Federal Reserve Conference Room.

The meeting had been underway for over two hours, yet the two dozen or so attendees remained deeply engaged in heated discussion.

“So... we’re all in agreement that leaving LTCM alone would be catastrophic, correct?”

From those who gave a bitter laugh as if it were obvious to those who nodded reluctantly, the two-hour discussion had converged on a single conclusion.

LTCM had to be dealt with—somehow.

However, the method of doing so varied from bank to bank.

“Two hundred fifty million dollars... It’s tough, but I think we can scrape it together.”

“That much isn’t bad. But even if we all pitch in, will it really be enough? I doubt this whole mess can be resolved with just $4.5 billion.”

The ones who could provide the money were banks with deep capital reserves or headquartered in Europe and thus had mostly sidestepped the dot-com bubble.

“...Can’t you shave that down a little?”

Then there were the smaller banks or those teetering on the edge of liquidity.

And finally...

“...Please, save us. Our company’s in real trouble right now. I might be able to scrape together $200 million, but $250 million is just too much. Governor, isn’t there something you can do?”

The banks hit hardest by this crisis and now drowning in liquidity shortfalls.

– Ahem.

At that moment, Governor William MacDonald cleared his throat. The attendees’ gazes turned toward the host of the meeting.

“Ah, Governor?”

“I-I’m serious. We could definitely manage $200 million—heck, even $150 million—but beyond that, we just can’t...”

Perhaps misreading the faint twist of the governor’s expression as irritation, Lehman Brothers’ Richard Fuld began pleading. But as soon as he saw Governor MacDonald break into a warm smile, he stopped.

“Ah, ah. My apologies. Just a tickle in my throat.”

The governor chuckled good-naturedly and tried to soothe the room, but in truth, his thoughts were far from relaxed.

‘Fisher did a great job. Ha, I nearly slipped there.’

In just a day, the liquidity crisis had worsened dramatically. No surprise, really—two disasters were colliding at once: the East Asia–Russia crisis and the dot-com bubble, both of which the Fed had been monitoring closely.

Perfect timing.

That’s what Governor MacDonald thought. In this utterly abnormal situation, the CEO of Alpha Fund had proposed a solution nothing short of brilliant.

A plan that satisfied the Fed, Alpha Fund, the sixteen banks gathered here—and even LTCM.

Sure, Meriwether would be ousted... but honestly, that’s a small price to pay. MacDonald had been flying back and forth so much lately his head was spinning from jet lag—someone like Meriwether deserved worse for the headache he’d caused.

‘Solving this by having Alpha Fund acquire LTCM—with the Fed folded into the picture, no less.’

It wasn’t fully private sector-led, nor was it a complete government intervention. Goldman Sachs’ secretive backroom scheme had been dragged into the light and rebranded as a consensus-based solution.

That meant no room for moral criticism. With Alpha Fund stepping back and playing the role of fixer, they became the hero of the story.

Look at the world’s top banks, frantically calculating how to recover a few tens of millions—they’d be grateful to Alpha Fund, not resentful. Alpha Fund had realized something: with enough money, there was no need to whisper behind the scenes with the Fed.

The Fed might catch some flak for allegedly leaning on Alpha Fund, but even that worked in its favor. Public confidence in the Fed’s grip on Wall Street had been eroding, and in America, economic crises were always blamed on the Fed. A single misstep could trigger massive political backlash.

Pulling Alpha Fund a step back—getting them to lead the acquisition while the Fed oversaw from a distance—was an irresistible opportunity to preserve the Fed’s honor and authority. Unlike Deputy Governor Fisher, Governor MacDonald had to consider the politics, and that’s what made this deal even sweeter.

‘Is that what that guy thinks about all day?’

Maybe. Alpha Fund was known for its horizontal structure and specialization. If you were that high up, you were likely more of a strategist and political mastermind than an actual investor. Probably focused more on maneuvering than money management.

Lost in thought, MacDonald noticed the eyes on him and lifted one hand with a gentle smile.

“Deputy Governor, you may explain.”

A quick glance.

– ‘Me?’

Deputy Governor Fisher blinked in surprise.

– Tap, tap.

MacDonald lightly tapped the documents on the table with a finger. It was all because Collins had arrived late.

Technically, this wasn’t proper. As the host, MacDonald should have led the entire meeting. But to give Fisher a bit of face and read the documents himself, he passed the spotlight over.

Three minutes left, maybe. Just enough time for a rough overview.

“Ahem. Then I shall explain. In fact, there was another proposal brought to us by Mr. John Corzine of Goldman Sachs and Mr. Erin Collins....”

Collins’ plan—crafted # Nоvеlight # with someone’s counsel—was simple when summarized:

[Alpha Fund acquires 95% of LTCM’s equity for $300 million.]

[Separate from the $300 million equity purchase, if the acquisition succeeds, 15 banks (excluding Goldman Sachs) invest $100 million each, Goldman Sachs contributes $300 million, and Alpha Fund puts in $4.2 billion. Equity is divided based on contribution.]

[This deal will be proposed to LTCM as a strong recommendation from the New York Federal Reserve and finalized pending review by the Federal Reserve Board.]

“Huh, but doesn’t that mean Alpha Fund takes a $300 million hit? They could just go ahead and buy LTCM outright.”

“Hm, I like it.”

The Lehman Brothers rep’s eyes lit up. Compared to JP Morgan and Goldman Sachs throwing in $250 or $300 million, Lehman could pay just $200 million and escape responsibility—clearly, this new plan was a better deal for them.

“What’s Mr. Collins thinking...?”

As questions formed and more people turned toward Alpha Fund’s CEO, Deputy Governor Fisher gave a slight nod of permission and added:

“Of course, the details haven’t been written into any official documents—Board approval would be required. But let me clarify that we’ve decided to show... a bit of leniency toward Alpha Fund’s future activities in recognition of their help.”

With that wry smile and Collins’ composed expression, the truth dawned on the room.

Even if they didn’t know the details, it was obvious: some kind of deal had gone down.

“Haha. Nothing to hide—it’ll be public soon anyway, so I’ll tell you now. You know the investment bank licensing application? That’s the one.”

Collins subtly emphasized the word bank, quietly reminding everyone here that they owed Alpha Fund a favor.

“Ahem... Well, if it’s just that.”

“Three hundred million isn’t a small sum—we can help with that much.”

Ordinarily, reducing their stake in LTCM wouldn’t have been good for them. But things were different now.

If LTCM recovered, a bigger share would obviously be better. The fund had once managed nearly $150 billion—it was a bargain to get a piece of it now. That’s why Alpha Fund was joining in.

But these were grim times. Even $100 million was precious in this recession. Rumors were already swirling about Lehman going bankrupt. With LTCM’s collapse threatening everyone, they were pitching in reluctantly—just to survive.

“—And so, the Fed has decided not to intervene directly in the market. With the Board already moving to engage in NASDAQ, our resources are limited, and thus this acquisition will be spearheaded publicly by Alpha Fund. We also plan to freeze certain assets for LTCM’s future special management. Further details will be provided by the Governor... Governor?”

As Deputy Governor Fisher outlined the “plan” and the astonishment grew in the eyes of Wall Street’s top executives...

Governor MacDonald found himself unable to concentrate.

He kept looking at Collins, who wore a warm, pleasant smile—and the same thought kept circling his mind.

‘Why... was he late?’

Seriously. For someone who orchestrated this entire scheme, why did it take him thirty minutes to walk a single block?

He hadn’t been trying to make a dramatic entrance. There hadn’t even been time for briefing materials to be reviewed. If this deal failed, he stood to lose more than anyone—there was no reason to arrive late.

It was puzzling.

What had he realized—and who had he just met?

***

Wall Street, late at night.

– Rustle.

[LTCM Report]

A plain title on a plain folder, concealing its vast and detailed contents.

“Ahaha! Ahahahaha!”

I laughed as I looked out at the stunning nighttime skyline, the moonlight slipping in through the glass and illuminating another report.

[LTCM Declares Debt Moratorium. Another Moratorium Hits.]

Another moratorium.

Not quite the right definition, but the report’s witty phrasing—highlighting how the Fed had frozen LTCM’s assets—pleased me.

“Good. Good.... This is... a truly excellent result. Mm. I’ve chosen my people very well.”

Glancing into the mirror, I saw a breathtaking young lady beaming brightly.

It was a beautiful sight.