Thomas E. Peisch
was quoted in a New York Times
article entitled "2 Bear Stearns Fund Leaders Are Acquitted.
" The article reports that two former Bear Stearns hedge fund managers were found not guilty of securities fraud. The managers were accused of lying to their investors about the precarious state of the funds they oversaw. Investors lost $1.6 billion when the funds, heavily invested in mortgage securities, collapsed in the summer of 2007. Mr. Peisch commented, “They tried to make these guys the poster children for the recession. The lesson is that the government has to be pretty careful in the future about the cases it selects to prosecute because they obviously didn’t even come close to selling it here.”