Bear managers acquitted
TWO former Bear Stearns hedge fund managers were acquitted of fraud charges yesterday.
In the first case against players in the US subprime mortgage meltdown that contributed to the financial crisis, a jury in a US District Court in New York found hedge fund managers Ralph Cioffi, 53, and Matthew Tannin, 48, not guilty after less than six hours of deliberations.
The verdict in the month-long trial is a blow for prosecutors and could make future government investigations into the financial crisis less aggressive.
Cioffi and Tannin were indicted in June 2008 on charges of securities fraud, wire fraud and conspiracy, one year after two funds they managed failed, costing investors $1.6bn (£956m).
The government also charged Cioffi with insider trading, but the jury found him innocent.