today

Beleaguered investment bank Bear Stearns is the subject of a criminal investigation into the collapse of two of its mortgage-related hedge funds and the loss of $1.6bn (£800m). In spite of the investigation commencing, it is known that criminal probes into the trading practices of hedge funds are very rare, with cases extremely difficult to prove. It is thought that the only way of bringing a case would be if some form of malfeasance against investors was uncovered.

Bear Stearns is said to have misrepresented the funds as low-risk, conservative vehicles.

IMO: They almost certainly did. This sort of problem, referred to in this blog earlier, could well have led to another international market crash, and could still do so.. Those ninja (no income, no job) mortgages at the root of it that half the world seems to have taken out are a true sign of the decadence of capitalism,