Michael Herman
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US prosecutors that charged two former Bear Stearns hedge fund managers with fraud last week are also looking into the pair’s dealings with other banks including Merrill Lynch and Bank of America.
Investigators are examining whether Ralph Cioffi and Mathew Tannin misled banks that lent money to their failed hedge funds, the online version of BusinessWeek reported, citing people familiar with the case.
The pair have each been charged with nine counts of conspiracy, securities fraud and wire fraud, which they deny.
The investigation into bank lending is expected to lead to additional criminal charges against Mr Cioffi and Mr Tannin.
A spokesman for Mr Cioffi and Mr Tannin declined to comment.
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Their must be more to this tan what has been written her. On what terms was credit given to Bear Stearns . Who approved the credit. Something is seriously amiss with the total banking system worldwide.
Jim Wills, Brisbane , Australia