Ralph Cioffi and Matthew Tannin, two former Bear Stearns managers, have been arrested and will now face charges for their part in managing hedge funds that collapsed one year ago. They have been accused of securities fraud related to their management of hedge funds backed by the sub-prime mortgage market.According to reports, Cioffi and Tannin knew these funds were in jeopardy but did not inform investors. When the sub-prime mortgage market collapsed it cost investors billions and brought down the one-time Wall Street giant Bear Stearns.
Cioffi and Tannin are scheduled to appear in a New York court on Thursday.
A video news report is first in the playlist below. The second video clip is the raw video of Cioffi and Tannin walking out the office building handcuffed. The third video clip is showing a press conference of a law enforcement representative speaking about "Operation Malicious Mortgage."
