The fallout

% of Countries with banking crisis

Banca Privata e Finambro 1974 Bankhaus Herstatt in Cologne Franklin Square National Bank – Long Island, New York Penn Central Corporation – Pennsylvania 1978 Banco Ambrosiano 1982 Continental Illinois National Bank and Trust Company (CINB) in May 1984, Drexel Burnham Lambert Group (DBLG) 1989 Bank for Credit and Commerce International (BCCI) 1991 Long-Term Capital Management (LTCM) 1994 Barings PLC 1995 Crédit Lyonnais' Paris 1996 Bipop-Carire 2001 Enron Corporation is an energy company based in Houston, Texas WorldCom (known as LDDS) and MCI Communications, MCI WorldCom WorldCom taking its final name on April 14, 2003 as part of the corporation's emergence from bankruptcy 2003 Since the collapse of fixed exchange rate August 1971

Robert C. Merton Leading scholar in finance; Ph.D., Massachusetts Institute of; Professor at Harvard University Myron Scholes Author of Black-Scholes model; Ph.D., University of Chicago; Professor at Economics (1997) LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers. Board of directors members included Myron Scholes and Robert C. Merton, who shared the 1997 Nobel MemoPriinEc Sciences for a "new method to determine the value of derivatives".[4] Initially successful with annualized returns of over 40% (after fees) in its first years, in 1998 it lost $4.6 billion in less than four months following the Russian financial crisisrequiring financial intervention by the Federal Reserve Bank and the fund closed in early 2000.[4]

Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the fifth-largest investment bank in the United States

Barings Bank (1762 to 1995) was the oldest merchant bank in London [1] until its collapse in 1995 after one of the bank's employees, Nick Leeson, lost £827 million ($1.3 billion) due to speculative investing, primarily in futures contracts, at the bank's Singapore office.

S&L crisis 1980 Japanese banking crisis 1990 December 1994 and early 1995 Mexico - Tequila Crisis Argentina, Brazil, The Philippines, Poland, 1997 Thailand, Indonesia Malaysia October 1997, Korea August 1998, Russia declared a debt moratorium January 1999, Brazil suffered an exchange rate crisis Local crisis

Glass-Steagall Act, passed on 16 June 1933 ************** Depositary Institution Deregulation and Monetary Control Act passed in 1980, The Garn-St. Germain Depositary Institution Act deregulating The Savings and Loan industry in 1982, and the GRAMM - LEACH - BLILEY ACT 1999 COMMODITY FUTURES MODERNIZATION ACT

*********** Lehman Brothers Bear Stearns Merrill Lynch Morgan Stanley Goldman Sachs Investment Banks

Table 23 DERIVATIVE FINANCIAL INSTRUMENTS TRADED ON ORGANISED EXCHANGES BY INSTRUMENT AND LOCATION FUTURESAMOUNTS OUTSTANDINGTURNOVER INSTRUMENTS / LOCATION Dec. Sep.Dec.Year Q1Q2Q3Q4 All markets....13, , , , ,188.31,005, , , , ,293.9 Interest rate , , , , , , , , , ,276.4 Currency , ,125.02,438.12,823.02,820.83,043.1 Equity index , , , , , ,974.4 North America.7, , , , , , , , , ,548.9 Interest rate , , , , , , , , , ,045.6 Currency , ,257.12,260.52,621.72,580.92,794.0 Equity index , ,855.95,811.46,265.76,069.46,709.3 Europe ,363.25,972.46,155.56, , , , , , ,882.5 Interest rate ,200.25,756.15,908.96, , , , , , ,410.8 Currency Equity index , ,508.63,990.34,289.44,765.85,463.1 Asia and Pacific1,531.22,293.82,622.52, , , , , , ,677.4 Interest rate ,395.42,208.02,506.72, , ,629.59,042.89, , ,976.0 Currency Equity index , ,290.41,999.32,059.62,565.54,666.1 Other Markets ,902.77,878.02,022.61,723.01,947.42,185.1 Interest rate ,158.66,737.21,788.11,456.11,648.91,844.0 Currency (Notional principal in billions of US dollars)