Thursday, June 19, 2008

Bear Stearns Indictment

by Bill McBride on 6/19/2008 12:25:00 PM

The WSJ has the indictment here.

According to the indictment, the managers knew material information about the condition of the funds, and then provided false information to other investors. As an example, the indictment alleges the managers knew of a major investor withdrawing their entire investment, but in answering direct questions about redemptions, falsely stated that fund redemptions would be minor.