The lawsuit, filed in U.S. District Court in Manhattan, is the first major federal case linked to the subprime mortgage crisis. The two have already been charged with securities fraud by the
The lawsuit accuses Bear Stearns; Cioffi and Tannin; and Raymond McGarrigal, a former Bear Stearns senior managing director and senior portfolio manager, of egregious misconduct in a $4 billion collateral debt obligation transaction structured and marketed by BoA.