Epstein Secrets

e value of level three assets and the Company's VaR, as described in paragraphs 589 to 790 below. 466. Moreover, as alleged in 1 274 to 278 above, Schwartz offered false reassurances to the public while the Company's liquidity plummeted the week of March 10, 2008. On March 10, 2008, the Company's liqui

7. In connection with the Company's 2006 Form 10-K, Defendants Cayne and Molinaro executed the applicable Rule 302 certification. 358. Defendants Schwartz and Molinaro filed identical certifications with respect to the Company's 2007 Form 10-K. 359. As explained above and in the Company's regulatory

s reports on internal control over financial reporting, required by Rule 302 of the Sarbanes-Oxley Act, were materially false and misleading because Bear Stearns' internal controls were ineffective. The Officer Defendants' statements were false and misleading because Bear Stearns' internal controls were signif

the losses on the remaining $845 million exposure were ultimately recorded, or if those losses were in fact ever recognized prior to its collapse. b. Bear Stearns' Financial Statements Misrepresented its Exposure to Decline in the Value of RIs 389. Statement of Financial Accounting Standards No. 140, Accounti

led 02/27/09 Page 23 of 347 throughout the Class Period. During the Class Period, when the price of Bear Stearns' shares was artificially inflated, Schwartz sold 91,233 shares for a total realized value of $9,867,001. 25. Defendant Warren J. Spector ("Spector") was Co-President, Co-COO of the Company f

) of the Exchange Act (Against the Officer Defendants) 214 COUNT III For Violations of Section 20A of the Exchange Act (Against Defendants Cayne, Schwartz, Spector, Molinaro, Greenberg, and Farber) 215 vi EFTA00316720 Case 1:08-cv-02793-RWS Document 102 Filed 02/27/09 Page 8 of 347 PRAYER FOR REL

' Leveraging Practices 19 3. Bear Stearns' Backing of the Hedge Funds 20 E. Bear Stearns' Misleading Models and Inadequate Risk Management 23 I. Bear Stearns' Misleading Valuation and Risk Models 23 a. The Importance of Valuation Models 24 EFTA00316715 Case 1:08-cv-02793-RWS Document 102 Filed 02/27

a's Account pas of 11/21031 putsurat to the ImurisCepoal Accumulate:a Plan for Satire Managing Dena Remarks: ICAP Pim). exempt under Rule 16h. 167 Schwartz, Alan D. 12/23/2005 " Signature el Reporting Person Dale Rennider: Report on a separate Inc. tor each class ol securities beneficially owned d ec

ISON AVENUE X Co-PresJCo-CO O EFTA00317028 'NEW YORK, NY fine 1:08-cv-102793tRWS Clocument 102 I Filed 02/27/09 Page 316 of 347 Signatures /s/ Schwartz, Alan D. •• Signature of Reporting Person 12/20/2005 Date Reminder: Report on a separate line for each class of securities beneficially owned dir

tle Of &Morley (Instr. 3) 2. Transacuce Dale (leaninOry,Tear) 2A. Maned Execution Da Many (Morebtatyeer) 3. Transaction Code (Iuse. e) 4. Stearn*. AC aired (A) ot Dirgosed 010))(Instr. 3.4 and 5) S. Amount of Securities Bentlichlly Owned F Wynne Reported Transact:ems) Onfill. 3 and S

October 1996. He became Executive Vice President of Bear Stearns in December 2001 and Chief Operating Officer in August 2007. 12. Alan Schwartz ("Schwartz") became Co-President and Co-COO of Bear Stearns on June 25, 2001. He was named the President of Bear Stearns on August 5, 2007 and became the Chie

2009 Page 13 of 19 Financial Trust Company, Inc. vs. The Bear Stearns Companies Inc. Verified Complaint Page 13 quoting Schwartz as stating that Bear Stearns' 'balance sheet, liquidity, and capital remain strong". 51. On or about the weekend of March 14, 2008, J1' Morgan offered just $2.00 a share for Bea