Two Words: Superseding Indictments

Jun.26.08 | About: ELEMENTS Ben (BSC)

BusinessWeek’s Matthew Goldstein, who has spent a large chunk of his career being extremely well informed about the serial skullduggery at Bear Stearns (NYSE:BSC), intimates that the feds may not be done with Messrs Cioffi and Tannin.


BusinessWeek has learned that authorities are now examining the funds’ dealings with Wall Street banks to determine whether the managers misled them as well...

...Prosecutors are particularly interested in the toxic $4 billion collateralized debt obligation that the pair enlisted BofA to guarantee and sell in the spring of 2007—when the market for such risky mortgage-backed securities teetered on the brink of implosion. 



Far be it for me to tell him his business, but Jamie Dimon’s better move might have been to have the Fed cover the legal exposures, and take his chances with the mortgage book.

Did Bear Stearns Fool the Street, Too?
by Matthew Goldstein and David Henry
BusinessWeek Jun. 25 2008

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