- Posted February 15, 2012
- Tweet This | Share on Facebook
Ex-Bear Stearns execs pay fines, accept bans
By Derek Kravitz
AP Economics Writer
WASHINGTON (AP) -- Two former Bear Stearns executives reached settlements Monday with federal regulators over civil charges they mislead investors about risky mortgage securities when the housing market was collapsing.
The Securities and Exchange Commission said Ralph Cioffi will pay $800,000 and be barred from the industry for three years, and Matthew Tannin will pay $250,000 and be banned for two years. The deal means that the pair will avoid a civil trial, which was scheduled to begin Monday in federal court in Brooklyn, N.Y.
"These serious sanctions reflect the defendants' misconduct, their ill-gotten gains and other considerations," said SEC spokesman John Nester.
Both men are neither admitting nor denying wrongdoing.
But U.S. District Judge Frederic Block, who must approve the settlement, called the fines "chump change" on two separate occasions during the Monday hearing. Attorneys for both men declined to comment on their clients' cases.
Cioffi, 56, and Tannin, 50, were acquitted in November 2009 in a criminal trial on conspiracy, fraud and other charges. Jurors weren't swayed by e-mails presented by federal prosecutors.
The two ran hedge funds that collapsed after betting heavily on the shaky subprime mortgage market, costing investors about $1.6 billion.
Bear Stearns was the first Wall Street bank to lapse. It was caught in the credit crunch in early 2008 and avoided bankruptcy in a rescue buyout in March by JPMorgan Chase & Co. with a $29 billion federal backstop.
Since 2010, the SEC has reaches settlements with three major Wall Street banks over charges of misleading investors about mortgage securities. Goldman Sachs & Co. settled for $550 million, Citigroup Inc. for $285 million and JPMorgan Chase for $153.6 million.
Published: Wed, Feb 15, 2012
headlines Oakland County
- Historical: Circuit Court judge has made indelible mark
- New ABA/Krill Strategies lawyer mental health study shows escalating burnout, risky alcohol use
- Nessel challenges administration’s rollbacks of Endangered Species Act regulations
- Time to renew license for 2026-2027 bar year
- Judge sentences man to 22 to 37 years for murder, felony firearm
headlines National
- Lindsay Clancy trial shows how hard it is to prove intent retroactively
- Is there a religious right to abortion? State supreme court will weigh in
- Harvey raises $550M in latest round of funding
- Vanderbilt law students will gain access to AI-powered deposition simulations
- Federal judges’ interns may accept stipends from law firms, ethics panel says
- Former lawyer who pulled gun on ex-wife in restaurant convicted of attempted murder




