Ralph Cioffi and Matthew Tannin, former execs at Bear Stearns did that funky perp walk this morning after being arrested by the FBI on fraud charges. The collapse of the funds they managed, in which investors lost over $1 billion, was one of the precipitating events of the subprime implosion.
The indictment said the pair lied about the funds’ prospects despite liquidity concerns and outlook for the market.
It also stated that one of the managers transferred a portion of his own investments from one of the funds but did not tell investors about the move.
A bizarre comment from the article
The subprime crisis took everyone by surprise, including the Fed and Treasury.
Ah, no. There were any number of responsible financial blogs, like Calculated Risk and Mish who saw the subprime collapse coming and were blogging intelligently and seriously about it for many months before mainstream media or the government got a clue. Why is it?