hobos in mansions thank bear stearns for eating their defaults

Investors in Bear Stearns’s ‘We’ve basically got nothing’ and ‘We’ve got a nickel’ hedge funds (the High-Grade Structured Credit Strategies Enhanced Leverage Fund and the High-Grade Structured Credit Strategies Fund, respectively), taking issue with the lack of value, are exploring legal action. Ross Intelisano, of Rich & Intelisano, whose services have been retained by two investors in the funds said that his clients are “shocked and angered by the losses” and “were under the impression that at least for the fund [that they were invested in] that the losses were much milder,” which was probably because up until Tuesday, Bear Stearns was pretending the funds still had value.
Bear Stearns declined to comment on the possible litigation, so here’s an imagined conversation from 383 Madison Avenue.
Richard Marin: Uh, Mr. Cayne, they’re threatening legal action.
James Cayne: Wah? My half-hearted, barely sincere, too little, too late apology wasn’t good enough?
Richard Marin: Apparently not.
James Cayne: Fuck it. Let’s go golfing.
Richard Marin: Okay, but no cheating this time.
James Cayne: You can trust me, Dick.
Angered Bear fund investors eye legal action [CNN Money]