Friday, February 15, 2008

Bear Stearns hedge fund investigation centers on investor conference call

An investor conference call held on April 25, 2007 is forefront in the investigation of Bear Stearns collapse of two failed subprime related hedge funds. During the call, Bear Stearns fund manager Ralph Cioffi told participants he was "cautiously optomistic" about Bear's ability to hedge it's subprime holdings.

At the same time, Cioffi had move $2 million of his own money out of one of the troubled Bear Stearns hedge funds.

The Wall Street Journal reported today that prosecutors in the U.S. Attorney's office are investigaitng the disparity between the public and prive comments of Mr. Cioffi and whether they constitute fraud.

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