Two senior ex-Bear Stearns bankers arrested and appear in court
NEW YORK – Two senior former Bear Stearns bankers have been arrested at their homes and appeared in court, facing charges over the collapse of two of the failed bank’s hedge funds.
The funds folded with the loss of $6 billion (£3 billion) in July 2007 after their US subprime mortgage exposure became worthless. Matthew Tannin, the bank’s then asset manager, and Ralph Cioffi, who was directly responsible for the funds, are both accused of misleading investors and overstating the value of investments within the funds. They could be the first high-profile bankers prosecuted in relation to the subprime crisis.
The criminal charges are the first to be brought against Wall Street executives stemming from the subprime crisis and are likely to be followed by more as investigators continue to raise questions about the way banks and other companies communicated to investors.
More on Structured Products
Dealers, regulators and distributors split on way forward for key information document risk indicators
Provisions on documentation eased but industry says more work needed on advertising rules
UBS bolsters New York equities desk, among other moves in June
Product will pay 5.95% annually if FTSE 100 or Euro Stoxx 50 are above 65% barrier on coupon date
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.