Update: The Bear Stearns indictments

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For the curious among you, here’s a link to the announcement of the indictments against the two former hedge fund managers at Bear Stearns. The charges are simple -- conspiracy, wire fraud, securities fraud.

Analysis: Whenever you see a picture like the one here (which shows former Bear Stearns big shot Matthew Tannin performing the time-honored, carefully staged, New York perp walk), you know the government, in its own ham-fisted way, is trying to SEND A MESSAGE.

So let’s be clear about what the message is: It has nothing to do with the mortgage industry or the sub-prime meltdown. That’s not what this case is about. The government is prosecuting hedge fund managers for allegedly lying to their investors; the government is coming to the defense of wealthy, sophisticated hedge fund investors. In other words, there is less here than meets the eye.

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Photo credit: AP