Bear Stearns ex managers on trial
Published:Tuesday | October 13, 2009 | 5:52 PM
Two former managers at investment bank Bear Stearns are to face a court in New York to answer to fraud charges.
If convicted Ralph Cioffi and Matthew Tannin, who managed two failed hedge funds that collapsed in June 2007, could be jailed for 20 years.
They have denied allegations that they knew of the funds\' problems but did not inform investors, who lost $1.4 billion.
Cioffi and Tannin are among the first financial executives to face charges since the global financial crisis began.
The hedge funds bet on the high-risk sub-prime mortgage market in the US before they collapsed.
Their closure was one of the first signs of the problems in the sub-prime market, which triggered a massive loss of confidence in financial markets.