Bear Stearns Fund Managers Will Be Charged With Fraud
Two former hedge fund managers at investment bank Bear Stearns were arrested Thursday morning after a federal criminal probe into the collapse of funds they oversaw, according to the Federal Bureau of Investigation.
The [two] are expected to be indicted and arraigned on securities fraud charges.
[They] oversaw two funds whose collapse last year helped kick off the credit crisis after the meltdown of the funds stoked widespread fears about investments linked to risky subprime mortgages.
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The indictments are expected to cite a personal e-mail sent by one manager to the other that appeared to suggest the Bear funds were in difficulty, days before one of the managers told investors that he was comfortable with the holdings…
UPDATE: Now apparently 400 people have been arrested. I wonder whose among the ranks.
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