FBI agents arrested two former Bear Stearns hedge fund managers at their homes yesterday, the first Wall Street executives to be formally charged by the US Government in relation to the credit crunch, The Times reports.
Within hours of arresting Ralph Cioffi and Matthew Tannin, the Justice Department announced that it had charged more than 400 people, including 50 in the previous two days, in a three-month sting operation relating to cases of mortgage fraud that have collectively cost the victims an estimated $1bn (£507m). Mr Cioffi and Mr Tannin were led in handcuffs from their homes respectively in Tenafly, New Jersey, and Manhattan, processed in the FBI's New York office and taken across the East River to a Brooklyn federal court. BARCLAYS IS UNDERSTOOD to be in the final stages of negotiating a cap...
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