Brooklyn Judge Calls Bear Stearns Settlement ‘Chump Change’
CADMAN PLAZA EAST (AP) — Two former Bear Stearns executives reached settlements this week with federal regulators over civil charges they mislead investors about risky mortgage securities when the housing market was collapsing.
The Securities and Exchange Commission said Ralph Cioffi will pay $800,000 and be barred from the industry for three years, and Matthew Tannin will pay $250,000 and be banned for two years. The deal means that the pair will avoid a civil trial, which was scheduled to begin Monday in Brooklyn federal court.
“These serious sanctions reflect the defendants’ misconduct, their ill-gotten gains and other considerations,” said SEC spokesman John Nester.