2 Former Bear Stearns Executives Arrested

Plus2 Former Bear Stearns Executives Arrested2 Former Bear Stearns Executives ArrestedThe Associated Press2 former Bear Stearns hedge fund managers were hauled into jail Thursday and charged with lying to investors about the collapse of the subprime mortgage market. (June 19)[Notes:ANCHOR VOICE] ((New York)) A white collar crime case in New York. Prosecutors say these two former Bear Stearns executives pretended to investors their billion-dollar hedge funds were doing well -- encouraging others to put money in the portfolios, saying they would be profitable, long-term investments. But meanwhile, the government alleges Ralph Cioffi and Matthew Tannin knew the funds were failing as the subprime mortgage market collapsed - pulling their own personal money out, while telling others to stay vested. ((Mark Mershon, FBI)) "This is not about mismanagement of a hedge fund investment strategy. It is not about reckless subprime lending practices. It is about premeditated lies to investors and lenders. It's about the defendants prostituting their client trust in order to salvage their personal wealth." But lawyers for the two men say their clients are being made scapegoats for the subprime meltdown. ((Ed Little, Defense Attorney)) "Perhaps this ought to be called Operation Malicious Prosecution. I'm not going to say that, I'll leave it to the jury. The only good news today is that there will be a trial in this case and hopefully at the end of the trial we'll get a jury verdict that says not only Ralph Cioffi is innocent that his reputation is restored." In Washington DC, the Department of Justice says Thursday's New York arrests are part of a nationwide investigation of bad securities and lending practices. ((Mark Filip, Department of Justice)) "'Operation Malicious Mortgage' and the Bear Stearns case demonstrate that the Department of Justice is determined to detect and to punish mortgage fraud and to help restore stability and confidence in our housing and credit markets." Soon after the two funds run by Cioffi and Tannin collapsed, Bear Stearns itself ultimately fell to the subprime crisis. The government had to step in to save the financial firm, and it was taken over by JP MorganChase. Ted Shaffrey, The Associated Press, New York

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News & Politics

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• bear
• stearns
• investigation
• former
• executives
• arrested

[PanzerBlitz43]

And right at the top of this criminal pyramid is the malicious monkey in the White House. He and his serial killer buddies will all be frog marched into a maximum security cell. Bush Cheney and the rest of his criminal gang will be lucky to escape capital punishment.

[bearstearn3]

i love bear stearns! =]

[DoBrigh]

@2resist i thought that the fed loaned money to jp morgan?

[DoBrigh]

@jfhomesweethome according to 'house of cards' they continually released reports saying 6% was in subprime when it was actually 60%, and that people inside Bear were taking this to greenberg and cayne and they were outraged... how do they defend against that book?

[bearstearn3]

dumbass FBI and prosecuters. i wonder how these jackases feel now for making an ass out of themselves trying to prosecute thse 2 fund managers

[jfhomesweethome]

theyre both actually innocent. if anyone has been following the trial the evidence that the prosecution has is flimsy at best. thats why theyre not settling out of court. this account is biased. how could they have known that theyre investors would have pulled out at the same time. additionally, cioffi actually did move his investments to another fund but this fund was equally affected by the crisis.

[HotButterNFly]

Listen, you loonie, my comment was not about the color of their skin, it was about the kind of crime they commited; a WHITE-COLLAR CRIME. Do you understand the meaning of "white collar crime"? I guess not. Please, stay in high school and get an e-DumMi-CatioN. It's a shame that we have taken that word and try to smear everyone with it just because they have different points of view. Oh, and you may want to GOOGLE white collar crime AND racists, because that is how dumm people like you learn

[HotButterNFly]

&*(*^*&ing schemerS!!! Did anyone noticed how nice and comfy the hand cuffs were on. The cops used two handcuffs so that the assh*ole would not be too unconfortable. Maybe because he/they are WHITE-collar criminals; but their crimes hurt many, many people, just like regular criminals.

[wojtek0000]

lets bring islamic law into these cases then every last citizen will be confident enough to invest in a truly capitalist system.