Two former Bear Stearns fund managers arrested (securities fraud)

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - Two former hedge fund managers at investment bank Bear Stearns were arrested Thursday morning after a federal criminal probe into the collapse of funds they oversaw, according to the Federal Bureau of Investigation.

The former managers, Ralph Cioffi and Matthew Tannin, are expected to be indicted and arraigned on securities fraud charges.

Cioffi and Tannin oversaw two funds whose collapse last year helped kick off the credit crisis after the meltdown of the funds stoked widespread fears about investments linked to risky subprime mortgages.

The collapse spurred questions about oversight and risk management operations at Bear Stearns, which was sold in March to JPMorgan Chase & Co in an emergency takeover deal brokered by the U.S. Federal Reserve.

Read more: http://www.reuters.com/article/ousiv/idUSN1933803520080619

[EnviroBat]

1. Good! Round up all of these fuckers.

Give them the fucking gas chamber.

[Yael]

2. Excellent. Two down and hopefully many more to come.

:toast:

[pattmarty]

3. I"ll be willing to bet they won't be going to a "privatized" prison.