On April 22, 2007, Bear Stearns hedge fund manager Matthew Tannin sent an e-mail to fellow hedge fund manager Ralph Cioffi. “The entire subprime market is toast,” he said. “There is simply no way for us to make money — ever.” Three days after the now-infamous “toast” e-mail, Tannin reassured investors during a conference call, telling them he was “very comfortable with exactly where we are” and “there’s no basis for thinking this is one big disaster.”
Of course, it was indeed a big disaster. The hedge funds run by Tannin and Cioffi cratered, costing investors $1.6 billion and leading to the near-death of Bear Stearns, which was ultimately sold to JPMorgan Chase & Co. The fund managers were indicted for fraud and conspiracy in June 2008. On Tuesday their trial will begin in federal district court in Brooklyn — with Tannin’s e-mails front and center in the prosecution’s case.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]