I'm sure there's more than a couple people happy to see these people in handcuffs, frog-marched out of their offices by the FBI. Enjoy:


June 19 (Bloomberg) -- Bear Stearns Cos. former hedge fund managers Ralph Cioffi and Matthew Tannin were taken into custody at their homes this morning over their roles in the collapse of two funds that ignited the subprime mortgage crisis last year.

The arrests are the first from a federal probe of possible fraud by banks and mortgage firms whose investments in subprime loans and securities plunged in value, causing losses that now total $396.6 billion. The Securities and Exchange Commission may sue the two men as early as today, claiming they committed fraud by falsely telling investors the funds they managed were in good condition, people with knowledge of the case said.

Cioffi, 52, was taken into custody at his Tenafly, New Jersey, home and Tannin, 46, at his Manhattan apartment, said James Margolin, a spokesman for the Federal Bureau of Investigation's New York office. The two men were processed at FBI headquarters in Manhattan, then taken out in handcuffs by six FBI agents to be transported across the East River to Brooklyn federal court for an appearance later today in connection with an indictment.

``The arrests are appropriate given the magnitude and the egregiousness of their alleged misconduct,'' said attorney Steven Caruso, who is representing investors in arbitration claims against the funds. Cioffi and Tannin engaged in a ``gross violation of the public trust.''

::snip::

Indictments against Cioffi and Tannin might lead to a cascade of criminal cases and civil suits, said former prosecutor Robert Bunzel, who is now a white-collar criminal lawyer with Bartko, Zankel Tarrant & Miller in San Francisco.

``The floodgates could open,'' he said.

More than 400 people have been charged in a separate U.S. Justice Department mortgage-fraud sweep, two law enforcement officials said today.

Called Operation Malicious Mortgage, the arrests are to be announced this afternoon by FBI Director Robert Mueller and Deputy Attorney General Mark Filip at the Justice Department in Washington. A number of arrests were made earlier this week and the FBI is still tallying the final numbers, said the officials who requested anonymity so as not to overshadow the formal announcement.

There's more, read it all here: http://www.bloomberg.com/apps/news?pid=20601087&sid=aZjI.EgNDuFQ&refer=home

It will come down to in a court of law if they KNOWINGLY did something illegal or if the market turned and they didn't see it coming.

If that's the case they are looking for a scapegoat and the people are innocent. Only they truly know the real answer.

You spelled grammar wrong.

Sorry... it's a spelling thing.

;-)

and what's a thang? is that a funky thong?
that thing thang thong thwayed tho thweetly

Indictments and consequences will be pale in comparison to the overall problem.