Fed Hunters Bag Two Bears

Updated from 2:56 p.m. EDT

Federal authorities on Thursday charged two former Bear Stearns fund managers with conspiracy and fraud charges, part of a broad federal crackdown on the mortgage market that includes 144 cases related to individual loans.

The Securities and Exchange Commission and the U.S. Attorney's office filed charges against Matthew Tannin and Ralph Cioffi, the Bear managers, accusing them of misleading investors and institutions they traded with about the extent of the losses in their portfolio. Cioffi has also been charged with insider trading. The Bear Stearns fund managers caused about $1.4 billion in losses, an FBI press release says.

"Operation Malicious Mortgage," targeting individual mortgage fraud, encompasses a three-and-a-half month investigation involving several federal agencies. The Federal Bureau of Investigation estimates that the 144 individual cases, which have resulted in charges against 406 defendants across the country, have led to $1 billion in losses. ...