Ex-Bear Stearns Fund Manager Tannin Worried About ‘Blow Up’

A message sent by Tannin on April 22, 2007, to Cioffi and Ray McGarrigal, another Bear Stearns fund manager, was cited in a June 2008 indictment. In the message, Tannin said, “The entire subprime market is toast.” He added, “There is simply no way for us to make money -- ever.”

Three days after the “toast” e-mail, Tannin told investors during a conference call he was “very comfortable with exactly where we are” and “there’s no basis for thinking this is one big disaster,” according to the government.