Bear Stearns former hedge fund managers Ralph Cioffi and Matthew Tannin were both arrested on criminal charges this morning for their pivotal roles in the whole telling investors the subprime funds were a-okay when in reality...well, you know. One would think being in charge of the two ridiculously-named and damn near impossible say three times fast entities--High Grade Structured Credit Strategies Fund and High Grade Structured Credit Strategies Enhanced Leverage Fund-- would be punishment enough but apparently, not so much.
Here's Ralph being escorted to federal court in Brooklyn:
And here's Matthew, patiently waiting his turn for the same:
Meanwhile, in another part of town:
It's a Bear Stearns going away party! For those (presumably) not going away to prison! Thrown by the biggest Bear Stearns party boy of them all! (Out of the shot because he's consulting his lawyers about how to avoid a Cioffi/Tannin-esque fate or out of the shot because it's hard to simultaneously pose for pictures and order 100 McGriddles when you can't feel your legs? YOU TELL US.)
Former Bear Stearns Fund Managers Arrested by FBI [Bloomberg]