Feds Arrest Wall St. Honchos in Subprime Mortgage Catastrophe
Under the criminal Bush administration this will be probably the only indictment of financial fraudsters, but all the greedy Angelo Mozilos of the mortgage world and the Wall Street honchos who caused the subprime mortgage disaster should be on trial.
From McClatchy: "Federal prosecutors on Thursday morning made the first high-level arrests of Wall Street executives in connection with the nation's sub-prime meltdown, charging the managers of a Bear Stearns investment fund for the ultra wealthy with fraud and conspiracy.
"The U.S. Attorney's Office in Brooklyn, N.Y., scheduled an afternoon news conference to discuss the indictment and arrest of Ralph Cioffi and Matthew Tannen, respectively the founder of a Bear Stearns hedge fund and its portfolio manager.
"McClatchy obtained a copy of the indictment, which alleges the two men deceived investors into believing the hedge fund, which held pooled mortgage bonds, was healthy when they knew it wasn't.
"As it turned out, problems in the "High Grade Structured Credit Strategies Master Fund" and the "High Grade Structured Credit Enhanced Master Fund" rattled Wall Street last August and set in motion a devastating chain of economic events.
"The collpase (sic) of those fund last August was the opening act of a sordid drama that has sent the U.S. housing market skidding to its largest decline in modern times, triggering a widespread credit crisis that now affects lending to consumers and businesses and has the U.S. economy teetering on the brink of recession."
It was the Bush administration's unregulated and deregulation policies and lack of any effective oversight that helped cause this economic catastrophe.
Impeachment must be back on the table.
From McClatchy: "Federal prosecutors on Thursday morning made the first high-level arrests of Wall Street executives in connection with the nation's sub-prime meltdown, charging the managers of a Bear Stearns investment fund for the ultra wealthy with fraud and conspiracy.
"The U.S. Attorney's Office in Brooklyn, N.Y., scheduled an afternoon news conference to discuss the indictment and arrest of Ralph Cioffi and Matthew Tannen, respectively the founder of a Bear Stearns hedge fund and its portfolio manager.
"McClatchy obtained a copy of the indictment, which alleges the two men deceived investors into believing the hedge fund, which held pooled mortgage bonds, was healthy when they knew it wasn't.
"As it turned out, problems in the "High Grade Structured Credit Strategies Master Fund" and the "High Grade Structured Credit Enhanced Master Fund" rattled Wall Street last August and set in motion a devastating chain of economic events.
"The collpase (sic) of those fund last August was the opening act of a sordid drama that has sent the U.S. housing market skidding to its largest decline in modern times, triggering a widespread credit crisis that now affects lending to consumers and businesses and has the U.S. economy teetering on the brink of recession."
It was the Bush administration's unregulated and deregulation policies and lack of any effective oversight that helped cause this economic catastrophe.
Impeachment must be back on the table.
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