New Bear Stearns Email Reveals Early Fear of "Blow-Up Risk"

Reuters:

NEW YORK (Reuters) - One of two former Bear Stearns managers indicted for fraud over the collapse of hedge funds in 2007 feared a "blow up risk" to investors as early as November 2006, according to an email released on Thursday.

Read the whole story: Reuters

Comments

[Rentug]

Obama needs to carry out more reform. He needs to get things done instead of just talking and planning because his voters are becoming impatient and the robber barons are at it again.

Good articles: http://pie.im/af30

2 party system gives no results.

[balancedsolution]

In regards to PhilipTaylor's post.....

first let me say you are a great writer, and thinker!

you are right about misrepresentation.

do most americans know how much misrepresentation goes on in a day?

probably 70% of people were naive or misrepresented when they purchased a house.

how many realtors told these folks, don't worry housing prices always go up? that's a true statement....
but the intent was to sell the house.

i just truly hope the JUSTICE Dept. is working on big cases!

Take the rats who created this mess, dig into their financial dealings and you'll make a small mint back.

Time to clean the rats out of Manhatten.

[tuberider]

Make that 70% read 80% and I'll agree 100%...

[ImissBush]

gee i wonder if any of them will c a day in jail

[schatsie]

Exactly HOW is this different from LONG TERM CAPITAL MANAGEMENT?...

Exactly HOW is this different from CHARLES KEATING and his RICO activity?

Every one who was party to this including the FEDERAL RESERVE was at the table 10 years ago when LTCM went down and EVERYONE knows about the Savings and Loan Fiasco....Time to raise the income tax rates on the Repugs.

[PhilipTaylor]

Just watched on CSPAN three so called "EXPERTS" say "Unfortunately Wall Street Broke NO LAWS!"
I nearly Fell out of my chair with Amazement!

* G0LDMAN and WallSt set up subsidiaries to develop sub-prime loans to feed into their DERIVATIVES MAKING MACHINES. Sub-prime loans were "SURE FAIL TRICK&TRAP" Mortgages, and were legal through buying their legality. No Crime!

* It is what they then did with those "SURE-FAIL" mortgages that is Illegal violating TWO important Laws: Manufactured "1nsider Trading" and Selling "Product they Misrepresented" to their buyers.

1. “PREMED1TATED MANUFACTURED 1NSIDER TRAD1NG”
a. Make SureFailMo rtgageProd ucts knowing they will fail
b. Buy Massive and Repeated A1G CreditDefaultSwaps Bets that the “SURE FAIL Derivatives” would FAIL!

Make it to fail&bet it will fail: "Manufactu­red-Inside­r-Trading" 100% Sure BETS.

2. Misrepresentation of High Risk Products and sold as Low Risk"AAA" Product all over the World.
__________ __________ _

Laws on books - LACKING IS AN HONEST ADMINISTRATION TO PROSECUTE!

“Misrepresentation” is contract law concept, meaning false statement of fact made by one party to another party, which has effect of inducing that party into a contract. For example, false statements/promises made by seller of goods regarding the quality/nature of the product that the seller has may constitute misrepresentation.

“Insider Trading” is trading securities by individuals with access to non-public information about product/company. Taking advantage of non-public information by an insider during performance of insider's duties, or in breach of fiduciary duty/relationship of trust/confidence.

[enyapjeff]

Crooks and thieves!!!

All of them

[RomeoMD25]

Jim Rogers Peter Schiff and Ron Paul predicted all this mess

[Gernuser]

Congratulations to to Obama for winning the Nobel Peace Prize

If you like finance & econ news you'll like: http://pie.im/af30

Obama needs to carry out more reform. Needs to get things done instead of just talking and planning.

[missmanners]

He was only worried about his JOB not sinking his COUNTRY.

[bzb]

They knew all along the product they were pushing was bogus.

[schatsie]

Absolutely..

[hellboundtrain]

Fear, because they understood the product that they had been pushing,
they better than anyone else.

[petef59]

Noooooo!! Fraud from the best & brightest (highest paid) in a free market economy??

[BannedInBoston]

"Once upon a time, there was this rich guy...."

[PoliticiansRspineless]

Tell us something that all true investors didn't already know. We all knew Wall Street had turned into a giant Las Vegas Casino by 2005 . Citi and Wakovia were already secretly saying to the feds that they had issues. Alot of $$ to oversea financial markets and investments when these secrets leaked out. I will not invest any $$ with wall street until they clean up this cess pool. What makes the US situation even worse is that the US govt/Feds are not telling the US citizens how grave the situation still is today. The US is in the worst shape it has ever been. The govt is trying to keep its citizens from rioting in the streets if they knew the truth///and I doubt they will be able to contain it when Wall street crashes again in late 2009 or early 2010.

[sonoffestus]

The stimulus funds will keep the market rolling until next fall, then the market will fall again seeing the economy will not have the "legs" to support it.

We'll be looking at a "stimulus bubble", after that, watch out.

[balancedsolution]

See ya in jail.

Well I won't...but don't drop the soap. Everyone always says that....but it's kinda true.

Make nice with your bunkmate. Give him massages and read bed time stories to him.