Two former Bear Stearns hedge-fund managers have been acquitted of lying to investors about the implosion of the subprime mortgage market.

A Brooklyn jury found Ralph Cioffi and Matthew Tannin not guilty Tuesday on all counts of conspiracy and fraud. It was the first criminal case to hit Wall Street amid the housing market meltdown.

Prosecutors claimed the pair hid warning signs their funds were about to implode. Prosecutors alleged the fraud cost 300 investors about $1.6 billion.

The domino effect nearly led to the demise of Bear Stearns itself. The firm barely avoided bankruptcy in a rescue buyout by JPMorgan Chase & Co. Hard money training

Tags: bear stearns, housing market, investors, mortgage, mortgage market, wall street

This entry was posted on Tuesday, November 10th, 2009 at 5:16 pm and is filed under Debt, Economic Turmoil, Global Economy, Global Financial, Global Recession, US Deficit, US Finance, US Inflation, World Financial. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.