What was the name of the 1998 market crisis linked to the collapse of Long-Term Capital Management?

The 1998 market crisis linked to Long-Term Capital Management was the Russian financial crisis.

Russia defaulted on domestic ruble-denominated government debt on August 17, 1998, and widened the ruble’s trading band. The default and subsequent currency collapse damaged confidence in emerging-market debt and contributed to a global flight from risk. Long-Term Capital Management, a highly leveraged hedge fund, suffered enormous losses as relationships that its models expected to hold broke down.

The Federal Reserve Bank of New York organized meetings that led private-sector banks to provide a recapitalization, rather than a direct U.S. government bailout of the fund. The episode demonstrated how leverage and interconnected trading positions could transmit stress beyond the market where the original shock occurred.

The crisis is sometimes labeled simply the LTCM crisis, but Russia’s default and ruble collapse were the key external shock that intensified the worldwide turmoil.