(Bloomberg) — When a congressional panel convened a hearing on the government rescue of American International Group Inc.
Posts Tagged ‘Bear Stearns’
Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs
February 24th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: American International Group, American International Group Inc, Bear Stearns, Bear Stearns Cos, Collateralized Debt Obligations, Committee On Oversight And Government Reform, Congressional Panel, Credit Default Swaps, Darrell Issa, Federal Reserve Bank, Geithner, Goldman Sachs, Goldman Sachs Group, Goldman Sachs Group Inc, House Committee On Oversight And Government Reform, International Group Inc, Mortgage Securities, New York Fed, Sachs Group Inc, Specific Securities 
Comments OffFed Generates $46.1 Billion Profit in 2009
January 15th, 2010 Before You Invest The Federal Reserve had its biggest bottom line ever in 2009, generating record profits as its holdings of Treasury, mortgaged-backed securities and agency debt grew.
The Fed last year generated a net income of $52.1 billion, of which it paid $46.1 billion to the U.S. Treasury, the Fed said Tuesday.
Posted in Finance Fraud Tags: 1 Billion, Aig, American International Group, Asset Purchase, Balance Sheet, Bear Stearns, Federal Reserve, Government Debt, J P Morgan, J P Morgan Chase, Low Interest Rates, Mortgage Agencies, Mortgage Backed Securities, Net Income, Open Market Operations, Record Profits, Rescue Operations, Trillion, U S Treasury, Windfall No Comments »Lachlan Murdoch quits consortium buying US trade magazines
December 11th, 2009 Before You Invest Tycoon pulls out of group buying Nielsen Business Media, publisher of titles including Billboard and Adweek
Lachlan Murdoch has dropped out of a consortium buying the publisher of US trade magazines including the Hollywood Reporter, Billboard and Adweek in a $70m (£43m) deal, according to reports.
Murdoch, Rupert Murdoch’s eldest son, had been linked with a consortium intent on buying the group Nielsen Business Media magazines through his investment vehicle Illyria.
Adweek reported that a casualty of the deal is Editor & Publisher, the US newspaper industry magazine founded in 1884, which will close.
Murdoch’s company has been replaced by a team that includes former Bear Stearns boss Alan Schwartz, according to the New York Post, which is owned by Rupert Murdoch’s News Corporation.
Guggenheim Partners, where Schwartz works, has the lead role in the consortium, while Pluribus Capital Management, which includes Matthew Doull, a step-nephew of Conrad Black, has a minority role, Nielsen Business Media confirmed today.
The joint venture, e5 Global Media, is also buying Mediaweek, Brandweek, Backstage, The Clio Awards and Film Journal International from Nielsen.
Last month Murdoch bought 50% of Daily Mail & General Trust’s Australian radio network, selling shares in News Corporation worth $28m to fund the purchase.
Murdoch, News Corporation’s former deputy chief operating officer, quit executive duties at the family firm in 2005 and moved back to Australia to develop his own business interests. He remains a director on the News Corporation board.
The deal is expected to complete on 31 December.
Posted in Finance Fraud Tags: Alan Schwartz, Australian Radio, Bear Stearns, Conrad Black, Daily Mail, Executive Duties, General Trust, Guggenheim Partners, Hollywood Reporter, Investment Vehicle, Lachlan Murdoch, Media Magazines, Media Publisher, Mediaweek, Murdoch Rupert, New York Post, News Corporation, Rupert Murdoch, Selling Shares, Trade Magazines No Comments »Bear Managers’ Acquittal May Hamper U.S. Fraud Prosecutions
November 11th, 2009 Before You Invest 
A federal jury acquitted two former Bear Stearns hedge fund managers of defrauding investors. Ralph Cioffi and Matthew Tannin were found not guilty on all charges of conspiracy, securities fraud and wire fraud. They were accused of deliberately misleading investors before the financial crisis.
Posted in Finance Fraud Tags: Acquittal, Bear Stearns, Bear Stearns Hedge Fund, Federal Jury, Financial Crisis, Fraud Charges, Hedge Fund Manager, Hedge Fund Managers, Legal Experts, Mccaughey, Misleading Investors, Newsone, Prosecutions, Prosecutors, Ralph Cioffi, Reuters, Securities Fraud, Smiles, Street Managers, Tannin, Wire Fraud No Comments »Raj Rajaratnam of Galleon Group, ex-Bear Sterns directors, others charged in insider trading
October 17th, 2009 Before You Invest 
In a case echoing the scandals of the 1980s, federal authorities exposed what they claim is the biggest insider-trading ring in a generation — a conspiracy in which a hedge-fund kingpin and executives at blue-chip firms including IBM and Intel allegedly connived to profit on Google and other big-name stocks.
At the center was Raj Rajaratnam, founder of Galleon Group, a New York-based fund firm that manages $3.7 billion.
Posted in Finance Fraud Tags: Bear Stearns, Bear Sterns, Chiesi, Chip Firms, Corp Executive, Federal Authorities, Federal Sentencing Guidelines, Galleon, Galleon Group, Google, Insider Trading, Intel Capital, Josh Klein, Kurland, Maximum Sentences, Menlo Park, Menlo Park California, Rajaratnam, Strategic Investments, Technology Stocks No Comments »Prosecution begins Opening Statements in Case Against Former Bear Sterns Hedge Fund Managers
October 15th, 2009 Before You Invest Opening statements by the prosecution began today in the trial of one time Bear Stern employees Ralph Cioffi and Matthew Tannin. The former hedge fund managers are the first to be tried in connection with a federal probe into the subprime market collapse.
The men are charged with misleading clients who invested into two separate hedge funds that collapsed.
Posted in Finance Fraud Tags: Actuality, Bear Stearns, Bear Stern, Bear Sterns Hedge Fund, Collateralized Debt Obligations, Credit Strategies, Federal Probe, Fund Managers, Hedge Funds, Insider Trading, Investment Policy, Market Collapse, Opening Statements, Personal Money, Ralph Cioffi, Securities Fraud, Strategies Master, Subprime Market, Tannin, Wire Fraud No Comments »Bear Stearns hedge fund managers begin fraud trial
October 13th, 2009 Before You Invest The trial of two Bear Stearns hedge fund managers has begun today, with the men facing potential jail sentences of 20 years if they are found guilty of fraud.
Matthew Tannin and Ralph Cioffi are denying allegations they knew two hedge funds they were operating were close to collapse but did not tell investors.
When the hedge funds, which bet on the sub-prime mortgage market, collapsed in June 2007, investors lost $1.4 billion.
Less than a year after the funds collapsed, so did Bear Stearns itself, becoming one of the highest-profile casualties of the financial crisis.
Much of the evidence against the pair is expected to center on emails sent between the two men from November 2006 up to June 2007.
Prosecutors claim Mr Tannin and Mr Cioffi continued to encourage clients to invest in the hedge funds, despite both being aware of the coming financial storm.
In an email from March 2007 that was cited in the indictment, Mr Cioffi told Mr Tannin: “The worry for me is that sub-prime losses will be far worse than anything people have modelled.”
A few days later, Mr Cioffi emailed a colleague to say that while Mr Tannin could not decide whether the market was heading towards meltdown or merely becoming a fantastic buying opportunity, he believed meltdown was the more likely option.
Jury selection for the trial at the Federal District Court in Brooklyn started today (October 13th 2009) and proceedings are expected to last for around five or six weeks.
Last week, JPMorgan Chase, which bought out Bear Stearns, paid $55 million on behalf of both investment banks in order to settle allegations they were involved in a Ponzi scheme at American Business Financial Services (ABFS), a now-collapsed mortgage lender.
Credit Suisse and Morgan Stanley also paid out an additional $45 million after it was claimed the four Wall Street firms falsely created the impression that ABFS was still financially viable, despite it becoming insolvent in 2000.
All allegations of wrongdoing were denied by the companies.
Posted in Finance Fraud Tags: American Business Financial Services, Bear Stearns, Bear Stearns Hedge Fund, Business Financial Services, Credit Suisse, Federal District Court, Financial Storm, Fraud Trial, Hedge Fund Managers, Hedge Funds, Investment Banks, Jail Sentences, Jury Selection, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ralph Cioffi, Sub Prime Mortgage, Sub Prime Mortgage Market, Tannin No Comments »JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine
October 11th, 2009 Before You Invest JPMorgan Chase, Credit Suisse and Morgan Stanley have agreed to pay out $100 million over claims they were involved in a Ponzi scheme at the now bankrupt mortgage lender American Business Financial Services (ABFS).
The lawsuit alleged that ABFS had become insolvent in 2000, but created the impression it was still financially viable with the assistance of the Wall Street firms. Bear Stearns, which is now part of JPMorgan Chase, was also named in the lawsuit. George Miller, the ABFS’s bankruptcy trustee, was seeking at least $750 million from the banks on behalf of more than 20,000 people who lost their life savings when ABFS went bankrupt. JPMorgan Chase paid $55 million on behalf of it and Bear Stearns to settle the case, while Credit Suisse paid out $37.5 million and Morgan Stanley $7.5 million. The companies denied any wrongdoing. Last month, changes to the Security and Exchange Commission’s investigations policies into Ponzi schemes were recommended after it missed Bernard Madoff’s $50 billion worldwide fraud for years.
Posted in Finance Fraud Tags: 100 Million, 5 Million, Abfs, American Business Financial Services, Bankruptcy Trustee, Bear Stearns, Bernard Madoff, Business Financial Services, Chase Credit, Credit Suisse, George Miller, Jpmorgan Chase, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ponzi Schemes, Security And Exchange Commission, Wall Street, Wall Street Firms, Wrongdoing No Comments »Bank of America’s $2bn lawsuit against Bear Stearns set for court
October 2nd, 2009 Before You Invest A Bank of America lawsuit against Bear Stearns and two of its hedge-fund managers will go ahead after a federal judge refused to dismiss contract and fraud claims.
Bank of America is claiming more than $2 billion in damages, alleging that Bear Stearns’s hedge fund losses were hidden from it, causing it significant losses as the value of the assets and the securities fell dramatically.
Hedge-fund managers Ralph Cioffi and Matthew Tannin are set to go on trial on October 13th 2009 in New York for their part in the alleged fraud.
The collapse of Bear Stearns’s hedge funds in 2007 led to the investment bank’s dramatic downfall that saw it sold to JPMorgan Chase & Co in May 2008 for just $10 a share.
Staff at the company, who owned almost 40 per cent of the shares between them, lost billions of dollars on their holdings, which had been trading at more than $150 a share in early 2007.
What Went Wrong When Bear Stearns Fell?
May 24th, 2009 Before You Invest It took 72 hours for Bear Stearns to crumble. In one day, Bear Stearns went from $18 billion in cash on hand to $3 billion, as investors panicked. Reporter Kate Kelly from the Wall Street Journal wrote about the final days of the investment bank’s collapse in her book Street Fighters
