Discover

2 Former Bear Stearns Executives Arrested


Title:
2 Former Bear Stearns Executives Arrested

Description:
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

Author:
AssociatedPress

Tags:
arrested, bear, executives, former, investigation, stearns,

Related Videos:

SEC: Bear Stearns Arrests Send a Message
PlusSEC: Bear Stearns Arrests Send a MessageSEC: Bear Stearns Arrests Send a MessageThe Associated PressTwo former Bear Stearns managers were arrested Thursday on securities fraud and other charges linked to the collapse of a hedge fund that bet heavily on subprime mortgages before the market collapsed. (June 19)This video contains ONLY natural sound. No script is available.
Eric Schmidt at the Bear Stearns Annual Media Conference
Eric Schmidt's Q&A at the Bear Stearns 20th Annual Media Conference in Palm Beach, FL, on March 6, 2007.
Bear Stearns, Jim Cramer, The Federal Reserve, JP Morgan
http://www.donharrold.net I ask again, "When will CNBC do the right thing and get rid of Jim Cramer?" Jim's advice on Bear Stearns (NYSE:BSC) is is most horrific since, well, since the dot-com disasters he shuffled folks into. Look, it's just getting too easy to point this stuff out. But, hold on, my video here is 10 minutes of other stuff too. Jim's just a symptom of a larger problem. Our founding fathers would be ashamed of how we've handed our economy to the federal reserve.
Bear Stearns scares Wall St.
Mar. 14 - U.S. stocks finished sharply lower on Friday after liquidity problems at Bear Stearns prompted new worries about global banks. The Dow fell 194 points to 11,951. The S&P 500 lost 27 points to 1,288. The Nasdaq dropped 51 points to 2,212. Crude oil snapped its record winning streak. SPEAKER: Brian Bethune, Chief U.S. economist, Global Insight Conway Gittens reports from New York.
Ralph Cioffi's business card
What price Ralph Cioffi's business card? Breakingviews.com has one, pre-dating the ex-Bear Stearns staffer's ill-fated foray into hedge funds. Antony Currie tries -- and fails - to remember how it came into his possession.
Hundreds Swept Up in Mortgage Fraud Arrest
PlusHundreds Swept Up in Mortgage Fraud ArrestHundreds Swept Up in Mortgage Fraud ArrestThe Associated PressThe U.S. Justice Department says more than 400 real estate brokers have been arrested since March, including dozens over the last two days, in a crackdown on mortgage fraud that has contributed to America's housing crisis. (June 19)This video contains ONLY natural sound. No script is available.
Bernanke Defends Bear Stearns Rescue
The Federal Reserve moved to assist a Wall Street investment bank on the brink of bankruptcy to prevent a failure that could have dealt serious consequences to the U.S. economy, Federal Reserve Chairman Ben Bernanke said Thursday. (April 3)
Jim Cramer Says Bear Stearns' Fund Problem Won't Spill Over
Cramer explains the true mechanisms behind the BSC hedge fund fallout.
What Happened To Bear Stearns Explained Simply Part 1
http://www.informedtrades.com/trades.php?page=course3 The first lesson in a 5 part video series on what happened to Bear Stearns, the role that the federal reserve has played, and Bear Stearns deal with JP Morgan.
Bear Stearns art
Bear Stearns shareholders may have approved the sale to JPMorgan but they were far from pleased with the outcome. Luckily some were able to express themselves - through art. Breakingviews was on location.