Federal Bureau of Investigations (FBI) agents arrested two former Bear Stearns hedge fund managers on criminal charges Thursday over investments they managed with ties to volatile subprime loans, Bloomberg news has reported.
The two managers—Ralph Cioffi and Matthew Tannin—have been at the center of an intense U.S. Attorney’s investigation. Reuters news claims the two funds managed by Cioffi and Tannin collapsed in 2007, launching subprime fears nationwide and contributing significantly to the spread of the nation’s credit crunch.
Bloomberg news is reporting that both men were arrested at their homes in the early morning hours.Kerri Panchuk