Ralph Cioffi and Matthew Tannin were both arrested outside of their New York and New Jersey homes and taken into custody.
The two former executives
were apparently indicted and arraigned on securities fraud charges and
are suspected of misleading investors about the risky subprime mortgage
market, which spurred the credit crisis. Investors in the hedge funds
lost about $1.6 billion. The collapse of Bear Stearns' hedge funds
preceded its eventual demise.
The FBI and the Justice Department are expected to make an announcement at 1:15 p.m., according to Reuters.
- Maria Woehr
Two former Bear Stearns Cos. hedge fund managers have been arrested, according to Reuters and NPR.
