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| Version 0 | Version 1 |
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| Bear Stearns ex-managers cleared | Bear Stearns ex-managers cleared |
| (about 1 hour later) | |
| Two former Bear Stearns hedge fund managers charged with fraud have been found not guilty by a New York jury. | Two former Bear Stearns hedge fund managers charged with fraud have been found not guilty by a New York jury. |
| Ralph Cioffi and Matthew Tannin were cleared of charges including securities fraud and conspiracy charges relating to the collapse of two hedge funds. | Ralph Cioffi and Matthew Tannin were cleared of charges including securities fraud and conspiracy charges relating to the collapse of two hedge funds. |
| Prosecutors had argued the two managers lied to clients to protect bonuses when their funds were losing money. | Prosecutors had argued the two managers lied to clients to protect bonuses when their funds were losing money. |
| The hedge funds bet on the high-risk sub-prime mortgage market in the US before they collapsed in June 2007. | The hedge funds bet on the high-risk sub-prime mortgage market in the US before they collapsed in June 2007. |
| Their closure was one of the first signs of the problems in the sub-prime market, which triggered a massive loss of confidence in financial markets. | Their closure was one of the first signs of the problems in the sub-prime market, which triggered a massive loss of confidence in financial markets. |
| In March last year, Bear Stearns became one of the most high-profile victims of the credit crunch, after US banking giant JP Morgan agreed to buy it with the backing of the US Federal Reserve. | |
| Insider trading | |
| Mr Cioffi, who was also facing charges of insider trading, left court, saying only: "I'm happy". | |
| During the month-long trial, prosecutors focused on e-mail exchanges between the two defendants, which, they argued, showed the two knew the funds were in trouble, but did not tell their bosses or investors. | |
| The two men are among the first financial executives to have faced charges since the global financial crisis began. | |
| Others are now facing trial following charges of insider trading at separate hedge funds. | |
| Last week, 14 individuals were charged in connection with an alleged insider trading scheme at US hedge fund Galleon Group. | |
| Three weeks previously, Galleon founder Raj Rajaratnam and five others were arrested. | |
| Mr Rajaratnam and his co-defendants are alleged to have gained $20m (£12m) in illegal profits thanks to inside information on firms including internet search engine Google and technology company AMD. |