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Chapter 4. Big Events in Trend Following > Event #5: Metallgesellschaft

Event #5: Metallgesellschaft

Metallgesellschaft now has a new name and a new identity as a specialty chemicals, plant, and process engineering concern. But for 119 years, the German company was a metals, trading, and construction conglomerate, best known for the high-profile mess it was involved in after a New York arm, MG Refining Marketing Inc. (MGRM), produced what its chief lenders considered reckless losses in its energy-trading operations. In 1993, steep margin debt calls contributed significantly to Metallgesellschaft’s loss of $1.5 billion (2.3 billion Deutsche marks at the time). Just before collapsing, the company was bailed out by German banks.[65]

What happened?


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