On April 22, 2007, Bear Stearns' Matthew Tannin e-mailed fellow hedge fund manager Ralph Cioffi, saying, "The entire subprime market is toast. ... There is simply no way for us to make money -- ever." In a conference call three days later, Tannin assured investors that "there's no basis for thinking this is one big disaster." Ultimately, funds run by Tannin and Cioffi cratered, costing investors $1.6 billion. Tannin's e-mails will be front and center this week in the fund managers' trial on fraud and conspiracy charges.
E-Mails Seen as a Flash Point for Bear Stearns Fund Managers' Fraud Trial
The American Lawyer
October 12, 2009