Financial Crisis

Jury Meets Bear Stearns 'Liars'

Proceedings in the first criminal case involving Wall Street bankers' behavior during the credit crunch opened in Brooklyn, N.Y. Wednesday, where former Bear Stearns hedge-fund managers were accused of defrauding investors and lying "over and over again" to steal $1.6 billion. "These two defendants lied to their investors to save their multimillion-dollar bonuses," the prosecutor said. "In the United States of America, that is a crime. It's a serious crime and it's called securities fraud." The men, Ralph Cioffi and Matthew Tannin, profess innocence. Their crashing funds ultimately contributed to the collapse of the 85-year-old brokerage firm.