Two Bear Stearns managers arrested
Two former http://www.wvwnews.net/story.php?id=4700 of funds linked to subprime lending, according to a federal indictment unsealed Thursday.
The indictment also said the two, Ralph Cioffi and Matthew Tannin, concealed the problems from senior managers at http://www.wvwnews.net/story.php?id=4246.
Matthew Tannin was taken into custody outside his New Jersey home on Thursday morning and Ralph Cioffi was arrested at his New York City home, the FBI said. They became the first executives to be charged criminally in the wake of the subprime market debacle.
A law enforcement official told The Associated Press on Wednesday that an indictment naming the men was the result of a yearlong http://www.wvwnews.net/story.php?id=3002.The former executives are suspected of misleading investors about the risky subprime mortgage market, the official said, speaking on condition of anonymity because the outcome of the investigation is pending.
Tannin “is innocent,” said his attorney, Susan Brune. “He is being made a scapegoat for a widespread market crisis. He looks forward to his acquittal.”
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