…the meltdown of Mr. Cioffi’s hedge funds on the back of losses tied to bets on the subprime-mortgage market have turned the fund manager and Bear Stearns into a big liability for Everquest. Everquest has decided it will no longer go ahead with the planned public offering, according to people familiar with the matter. Bear Stearns declined to comment. Shelving the offering leaves Mr. Cioffi’s funds and Wall Street’s Bear Stearns with a new headache: Together they own nearly 75% of Everquest, but would themselves be unlikely to provide further funding for the company…executives at the company realize any sort of public share sale will be impossible for some time, a person familiar with the matter said.
This seems to be proof of how quickly fate can change its course — a few months back, Cioffi could do no wrong in the mortgage finance space.