Banks Sell `Toxic Waste' CDOs to Calpers, Texas Teachers Pension Fund

(Bloomberg) -- Bear Stearns Cos., the fifth-largest U.S.
securities firm, is hawking the riskiest portions of collateralized
debt obligations to public pension funds.

At a sales presentation of the bank's CDOs to 50 public
pension fund managers in a Las Vegas hotel ballroom, Jean
Fleischhacker, Bear Stearns senior managing director, tells fund
managers they can get a 20 percent annual return from the bottom
level of a CDO.


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