High-Grade Structured Credit Strategies, L.P. (the "HG Fund"), WHEREAS, FTC withdrew its investment in the HG Fund and invested $20,155,344 in the Bear Stearns High-Grade Structured Credit Strategics Enhanced Leverage Fund, L.P. (the "EL Fund"); and WHEREAS, FTC invested ten million U.S. Dollars ($10,000,000) and COUQ invested

. Specifically, the two that lost a few billion—shocking, considering that they were run by a movie critic. We've especially been able to kick the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage fund when it's been down because first, anyone with a name like that deserves to be stuffed in a locker and se

t and trusted friend to many senior executives at Bear Steams. 4. In August 2006, FTC invested in excess of $20 million in a hedge fund called the Bear Stearns High-Grade Structured Credit Enhanced Leverage Fund, L.P. (the "Enhanced Fund"). Tenth months later, this investment was wiped out when the Enhanced Fund, which in the i

vember 2006, Epstein caused FTC and COUQ to invest nearly $35 million in Bear Steams High-Grade Structured Credit Strategies, L.P. (the "HG Fund"), Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage, L.P. (the "EL Fund"; together with the HG Fund, the "HG Funds") and Bear Stearns Asset Backed Securities Partn

ment June 1, 2007 Bear Stearns Asset Backed Securities Partners LP Amended & Restated Limited Partnership Agreement Jan. 31, 2001 EFTA00306072 Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Fund, LP Limited Partnership Agreement June 20, 2006 Bear Stearns High Grade Structured Credit Strategies LP

e and encompass "all," and "all" shall be understood to include and encompass "any." - 2 - KU 274066.1 EFTA00724437 10. The term "Funds" means Bear Stearns High-Grade Structured Credit Strategies, L.P., Bear Steams High-Grade Structured Credit Strategies Enhanced Leverage, L.P., Bear Stearns High-Grade Structured Credit Str

ts were being investigated by the press, including Landon Thomas at the New York Times, following the collapse of two Bear Stearns hedge funds, the Bear Stearns High-Grade Structured Credit Strategies Fund ("the "High-Grade Fund") and the Bear Stearns High-Grade Structured Credit Strategies Leverage Fund ("the Enhanced Fund") (c

the law. Epstein's Virgin Islands-based money-management firm, Financial Trust Company, is listed in the SEC filing as a "beneficial owner" of the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage fund. A January filing with the Securities and Exchange Commission describes Epstein's firm as having "the power

as opted to prop up that entity with $1.6 billion in loans (see BusinessWeek.com, 6/22/07, "Bear Stearns to the Rescue—Sort Of"). The four-year-old Bear Stearns High-Grade Structured Credit Strategies Leverage fund was down about 10% as of the end of April. Bear Stearns has suspended investor redemptions in that fund, too. The W