Cioffi Losses Recovered in Secret Deal

Apparently, the trick to getting back money from the Bear Stearns hedge funds that went to the incinerator in mid-2007 was to be a resident of the Commonwealth of Massachusetts, and having secretary of state William F Galvin brew up a secret — whoopth — deal.

During the fall of 2007, Bear Stearns, the parent company, sought to reach what seemed like arbitrary settlements...Those who invested in May or June 2007 and accepted the offer got all their money back; those who invested between January 2007 and April 2007 and accepted the offer got two-thirds of their money back; and those who invested before January 2007 and accepted the offer received one-third of their money back...

...Galvin’s November 2008 settlement with JPMorgan Chase (JPM) put $9.3 million back in the pockets of the fortunate Massachusetts investors, giving them 100 cents on the dollar and, in many cases, topping up their original settlements with Bear Stearns...

Investors who may not have fared so well should probably call David Weintraub, the lawyer at JPMorgan Chase who is handling the investor deals. But if the phrase “Go pound sand” comes up, don’t say you weren’t warned.

Nice job, Bill. Apart from the secrecy bit. But that seems all cleared up now.

The Bear Stearns Lucky Bastards

by William D. Cohan

The Daily Beast Jan. 14 2008

Administrative Complaint

In the matter of Bear Stearns Asset Management

Nov. 14 2007