From THE BUSINESS SHEET: Taken by itself, the “subprime is toast” email that was leaked yesterday might be innocuous. (Investors often react one way upon first seeing incoming news and, after considering it more deeply, change their minds).
More worrisome for the Bear Stearns defendants are the statements they made to investors and prospective investors as their concerns about the funds’ liquidity mounted. Also a problem are allegations that they lied about how much of their own money they had in their funds.
In any event, here’s the indictment. You be the judge: