Bear Stearns managers indicted in the USA

This video from Associated Press in the USA is called 2 Former Bear Stearns Executives Arrested.

By Andre Damon:

US: Bear Stearns hedge fund managers indicted

24 June 2008

Federal prosecutors indicted two former Bear Stearns hedge fund managers on charges of securities, mail, and wire fraud last Thursday. Funds operated by the two executives, Ralph Cioffi and Mathew Tannin, folded in June of last year, taking some $1.6 billion of investor funds down with them.

Cioffi and Tannin are the first Wall Street executives to be prosecuted in connection with the credit crisis. The collapse of their funds came relatively early in the crisis, during the spring of 2007, and their failure helped set off a fire sale that led ultimately to the Federal Reserve bailout of Bear Stearns in March of this year.

The legal charges against the two are based on their having misled wealthy investors as to the real values of the funds shortly before they collapsed.

Fed minutes show extent of Bear Stearns crisis: here.

Wall Street sheds jobs amid talk of bank failures: here.