Bear Stearns ex-managers arrested

  1. http://news.bbc.co.uk/2/hi/business/7463713.stm


    .. its good to see that people that screw over others are {hopefully} getting what they deserve.
     
  2. jcsd
  3. Astronuc

    Staff: Mentor

    I heard about these two guys. I believe the particular investigation has been ongoing for more than one year, which means it predates the sub-prime crisis. There are other investigations ongoing as well.

    FBI arrests 300 property players
    http://news.bbc.co.uk/2/hi/business/7464298.stm


    We had people from a local sheriff's office apparently looking for a body in the river. Apparently someone (one who is involved in some financial shenanigans) either committed suicide or faked a suicide and disappeared.
     
  4. Greg Bernhardt

    Staff: Admin

    There needs to be ALOT more action by the FBI and SEC in regards to the markets. The manipulation is rampant and obvious.
     
  5. Qft !!!
    There isn't a lot about China I like, but I think they have the right idea !!!
    {joking, some of their "capitol punishment" is over the line}
     
  6. What's not to like about Mobile Death Vans?
     
  7. Astronuc

    Staff: Mentor

    Certainly that is the issue here.

    http://money.cnn.com/2008/06/19/news/newsmakers/bear_stearns_investigation.ap/index.htm?dlbk
     
  8. edward

    edward 1,005
    Gold Member

    There is a lot of blame to go around. Many local builders were requiring buyers to sign a document stating that they were going to live in the homes purchased.

    It was done with a wink of the eye. I could drive through the new subdivisions and spot the flip homes. There would typically be one car parked on a clean driveway (no tire marks) for long periods of time. For that matter a lot of the sales people were involved in the flipping.

    The no money down low interest rate adjustable rate mortgages made it all happen.

    A lot of hard working honest people did live in the new homes and are now looking down the street at all of the houses in foreclosure, while their own home is now worth less than they paid for it.
     
    Last edited: Jun 19, 2008
  9. Astronuc

    Staff: Mentor

    An NPR news summary puts the number arrested by the FBI at over 400 since March of this year.

    http://www.npr.org/latestnews/#MT91692422

    http://news.yahoo.com/s/ap/20080619/ap_on_bi_ge/bear_stearns_investigation
    The FBI and SEC are going after financial managers. I suppose the FEDS could use RICO.
     
  10. mgb_phys

    mgb_phys 8,952
    Science Advisor
    Homework Helper

    It's reassuring that the whole thing was just a handfull of naughty managers at one bank and not a decade of massive consumer over spending on credit cards backed by home equity loans.
    So once these guys are convicted the economy should just bounce back.
     
  11. edward

    edward 1,005
    Gold Member


    Consumers can't overspend without being enabled by the banks.:rolleyes:
     
  12. :rofl: I laugh at your sarcasm, but yet I feel that adds to my feeling that there is total {maybe not total..} corruption within the higher level CEO types of big business and government...
    That's sad. I expect more from people and our government. :grumpy:
     
    Last edited: Jun 24, 2008
  13. mgb_phys

    mgb_phys 8,952
    Science Advisor
    Homework Helper

    I was rather making the opposite point!
    The cause of the problem is people assuming that their home equity was extra free money that could be spent on a new SUV/ big screen TV etc.
    When they found out it wasn't they need someone to blame.
    Obviously it can't be their fault so you need to find someone.
    Nobody likes bank managers, so just find one who broke some rules and blame them.
     
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