June 2008

Did the Securities and Exchange Commission miss warning signs back in 2005 that could have helped it stop the meltdown at Bear Stearns?   It's a question that arises from an SEC probe into Bear Stearns in 2005 alleging that the Wall Street firm may have fraudulently valued mortgage-related securities, the very same products that led to Bear Stearns' collapse, forcing a rescue orchestrated by ... read more

Former hedge fund managers Matthew Tannin and Ralph Cioffi have been arrested by the Federal Bureau of Investigation, charged with securities fraud and conspiracy in connection with their management of two Bear Stearns hedge funds which collapsed last summer, a bellwether event in the subprime and credit crisis. The two are the highest level executives charged in the subprime mess to ... read more

With record losses from the subprime and credit crisis veering towards the $400 bn mark, here come the market police. In the crosshairs: Hedge funds, including the indictments of the two Bear Stearns hedge fund managers. A senior law enforcement official said in an interview that hedge funds now sit at the top of the hit list of federal investigations into the subprime crisis, including at ... read more

A growing number of Congressmen are demanding that votes be delayed on the new $300 billion housing relief legislation until hearings are held into a controversial mortgage loan program at Countrywide Financial involving alleged preferential treatment given to elected officials. Countrywide (CFC) officials allegedly gave preferential treatment in mortgage loans, including float-down interest ... read more

Bank of America (BAC) has advertised itself as "the bank of opportunity." Countrywide Financial (CFC) and politicians who got inside sweetheart loan deals would have to agree. The question for shareholders in Bank of America is this: Does the bank fully comprehend the extent of the problems it will soon inherit when it buys Countrywide? Bank of America is forging ahead to buy Countrywide ... read more