Bear Stearns Hedge Fund Managers getting indicted for starting credit crisis – are they scapegoats for the Federal Reserve’s catastrophic failure?
Bill Jones
Jun. 16, 2008

The Bear Stearns Hedge Fund Managers are getting indicted for starting the credit crisis. According to media sources, Federal prosecutors are preparing to file criminal charges against managers of two Bear Stearns Cos. hedge funds whose collapse helped mark the start of the credit crisis. The U.S. Attorney's office in Brooklyn is in the process of completing interviews of witnesses and other key people in the case this week, and has indicated to lawyers with interest in the case that indictments could be imminent.

The former Bear Stearns managers, Ralph Cioffi and Matthew Tannin, managed two high-profile bond portfolios for the securities firm's asset-management unit. Bo doubt they aere one of the helpers in triggering the crisis. But are they really the root cause of the credit crisis?

It was the biggest failure of the Federal reserve under Alan Greenspan. The Fed failed to foresee the problems and troubles with the structured debt instruments. While Mr. Bernanke’s former employer Princeton University was busy building a new building for the Operations Research and Financial Engineering department, the Fed failed to understand the risks of these newly crafted untested financial instruments and other derivatives.

It is a failure of the Federal reserve and the bush Administration that promoted these illusive financial derivatives trying to please the big financial players.

Bear Stearns Hedge Fund Managers getting indicted for starting credit crisis – are they scapegoats for the Federal Reserve’s catastrophic failure?
Bill Jones
While Mr. Bernanke’s former employer Princeton University was busy building a new building for the Operations Research and Financial Engineering department, the Fed failed to understand the risks...
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Credit rating agencies worldwide may be outlawed in the next several years – EU cracks down on them
Fred Day
The credit rating agencies are root cause of the massive financial meltdown intimated by the credit related problems. The credit agencies in US, Europe and Asia have proved their worthlessness.
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Biggest insurer AIG faces massive credit-related losses and regulatory probes – removing Martin Sullivan exposes the serious trouble
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AIG’s potential loss is much higher. The pressure to change the top management has come from a shareholder revolt. The current board had to give in to the pressure of the shareholders.
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Dollar will move sideways as Federal Reserve is caught between lower growth and commodity hyperinflation
Nancy Oscar
US Dollar rose to a one-month high this week as Treasury Secretary Henry Paulson declined to rule out intervention to support the dollar and U.S. retail sales increased in May twice as much as economists forecast.
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Preferential treatment by Countrywide to Senator Kent Conrad shows how corrupt the mortgage business is
Peter Oberois
Conrad said he also received a loan from Countrywide on an eight-unit apartment building in Bismarck, North Dakota, even though the lender typically serves properties that have four units or less.
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The hyperinflation in commodities and credit squeeze create the recipe for financial meltdown v3.0
Joe Weinman
The banks will face severe runs one after the other. People will struggle to survive with skyrocketing heating costs, food prices and $6 to 7 a gallon gasoline.
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