Behind Bear's fall

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The collapse of two Bear Stearns structured credit funds points out what can go wrong at a bank-run platform

The collapse of two Bear Stearns structured credit funds points out what can go wrong at a bank-run platform

By Carolyn Sargent

In hindsight, Ralph Cioffi, and the hedge funds he ran at Bear Stearns, were always headed for a spectacular fall. Cioffi, a 22-year Bear veteran, was no traditional hedge fund manager, savvy from years of trading Bear's own capital - but instead a top mortgage bond salesman. Bear allowed him not only to run outside investor capital - but also to stuff his funds with Bear-originated collateralized debt obligations that he allegedly helped to form. Bear even helped