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Why The Bear Stearns Duo Had To Take The Fall

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We've written a lot about how Ralph Cioffi and Matthew Tannin seem to have had the misfortune of being assigned the role of fall guys for the collapse of Bear Stearns, an event in which they arguably played a minor and peripheral role. But this morning a report from National Public Radio reveals that it is far worse than that. The Feds wanted to arrest some Wall Street guys at the same time they announced the prosecutions of a bunch of mortgage originators. They were intent on arresting the guys, not letting them surrender, and perp-walking them for the photo-op. Even worse, they targeted the Bear guys because the fact that the firm had already collapsed meant the arrests wouldn't roil the market.
Justice isn't blind. It's watching the markets.
How the Bear Stearns Fraud Case Unfolded [NPR]