Bear Stearns managers indicted; emails could be smoking gun - MarketWatch:
"'If we believe the [collateralized-debt obligation report] is anywhere close to accurate I think we should close the funds now,' wrote Tannin, according to the indictment. 'The reason for this is that if [the CDO report] is correct then the entire subprime market is toast. If AAA bonds are systematically downgraded then there is simply no way for us to make money -- ever. ... Caution would lead us to conclude the [CDO report] is right -- and we're in bad bad shape.'Ouch. But is this just speculation? The whole thing is conditioned n an "if". Maybe they concluded that things were not as bad as suspected prior to the April 25th meeting? Would not want to be a juror on this one, it could go a while. Stay tuned.
But Tannin, Cioffi and other high-ranking Bear Stearns executives met with investors April 25 and assured them the funds had plenty of liquidity to survive any upcoming pressure."