Big debate rages about charges against Bear Stearns execs

Recall that Ralph Cioffi and Matthew Tannin, portfolio managers of the two Bear Stearns hedge funds that collapsed a little over a year ago, have been charged with fraud--essentially for not disclosing the true extent of the funds' portfolios to clients. As TheDeal.com notes, a big debate has erupted over the legitimacy of the charges. One line of thought has been that the two were charged as scapegoats for the entire mess. Another line suggests that the two were charged to alleviate the pressure to charge others higher up the food chain. It starts sounding a little conspiracy oriented. We may not have seen the last of the charges, though you get the feeling the top execs will not be charged with anything. However, if the Bear Stearns managers decide to go to trial, we may hear a lot about the higher ups and what they did or did not do.    

For more:
- here's some commentary from TheDeal.com

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