In business news, the FBI has arrested and charged two former hedge fund managers at the investment bank Bear Stearns for fraud over two funds that collapsed last year. Matthew Tannin and Ralph Cioffi are the first executives to face criminal charges in the wake of the subprime mortgage crisis. The FBI also announced it has charged more than 400 people since March in a nationwide crackdown on mortgage fraud. Deputy Attorney General Mark Filip announced the charges.

Mark Filip: “And the allegations detailed in that indictment are that the losses to investors are roughly $1.4 billion. Now, at the risk of overstating the obvious, lawyers will disagree, their experts will disagree as to what exact dollar amount is appropriate to ascribe to those losses as to fraud, but that’s what that indictment charge is. The other cases are believed to encompass an additional billion dollars. So you’re talking about billions of dollars.”