The Department of Education has hired a former Bear Stearns managing director to be the new CFO. George Raab has accepted the $180K/year job--which involves overseeing $20 billion--but the Sun says the the "appointment will not become official until a background check is completed." The Post points out that the DOE is "currently the only major agency not plugged into the city's electronic budgeting system" and gets a quote from District 1's Community Education Council......

White collar perp walk time: WNBC is reporting that the FBI arrested former Bear Stearns hedge fund managers Ralph Cioffi Jr. and Matthew Tannin this morning. Why? Because they allegedly reassured investors the hedge fund was a-okay "before the funds lost more than $1.5 billion in value." The WSJ's Law Blog breaks it down: On April 22, 2007, Tannin emailed Cioffi, fearing "the market for complex bond securities was 'toast.'" Then "Cioffi and a......

The Federal Reserve Board may be sending distress signals about a “prolonged and severe economic downturn,” but ultrarich individuals like hedge fund manager Lee Tachman aren’t sweating it; the 38-year-old Tachman just spent $50,000 on a four day vacation to Miami with three of his bros. According to a ‘Happy Monday’ article in the Times, Tachman’s crew rolled with a “private jet, helicopter, Hummer limousine, Ferraris and Lamborghinis; stayed in V.I.P. rooms at Casa Casuarina,......

Photograph of Federal Reserve Chairman Ben Bernanke (left) testifying before the Senate Banking Committee by Susan Walsh/AP New York Federal Reserve Bank President Timothy Geither told lawmakers today, "What we were observing in U.S. and global financial markets was similar to the classic pattern in financial crises," as Federal Reserve officials defended why they helped JP Morgan rescue Bear Stearns from collapse. Fed chairman Ben Bernanke told the Senate Banking Committee, "Given the exceptional......

Photograph of Bear Stearns' headquarters (center) and JP Morgan (right) by Mark Lennihan/AP With JP Morgan now offering $1.2 billion for troubled Bear Stearns, it's expected the deal will close on April 8. JP Morgan needed 50% of Bear Stearns shareholder approval, and the new $10/share price would give them 45% yes votes (5% is expected from bondholders); an analyst told USA Today the revised deal "virtually guarantees a yes vote at $10 per......

Photograph of Bear Stearns by Mark Lennihan/AP The NY Times reports "JPMorgan Chase was in talks on Sunday night for a deal that would quintuple its offer for Bear Stearns...in an effort to pacify angry Bear shareholders." Over a week ago, JP Morgan had agreed to pay $2/share for Bear Stearns stock, for a total payout of $236 million, but the new talks would raise the price to $10/share, making it a billion-dollar deal.......

Although the stock markets didn't tank yesterday (the Dow was up 21 points), it was a volatile day as Wall Street reacted to the bargain basement sale of Bear Stearns to JP Morgan. Naturally, this means the first lawsuit has been filed on behalf of shareholders who claim the investment bank "made false statement about the firm's financial condition." The employees are feeling the brunt of the pain: Besides their Bear Stearns stock plummeting in......

Photograph of newspaper distributor in London by Sang Tan/AP This is going to be a tough morning on Wall Street. World financial markets fell and are falling after yesterday's news that JP Morgan had purchased Bear Stearns for $2 a share, a grand price of $236 million for a company valued at $3.54 billion on Friday. Tokyo's Nikkei 225 index fell 3.7%, and Hong Kong's Hang Seng fell 5.25%. Currnetly, London's FTSE 100 has......

Photograph outside Bear Stearns' offices on Friday by Mark Lennihan/AP It's the New York banking equivalent of the Enron meltdown: Bear Stearns has agreed to sell itself to JP Morgan Chase at a fire sale price. When Bear Stearns' 14,000 employees left work Friday afternoon, the bank's stock had already plunged almost 50% in value, closing at $30 a share. But today they found out something much, much, much worse: their company has been......

Earlier today, a squash tournament kicked off inside Grand Central Terminal. Yes, inside! The Bear Stearns Tournament of Champions Squash 2008 started matches today, and the tourney continues through next Wednesday. Over 150,000 commuters are expected to watch the top squash players compete. A glass-walled court was assembled inside Vanderbilt Hall at the terminal; there are tickets Ticketweb and there's also free seating for the public. And via SquashTalk, here's a list of squash......

Today on the Gothamist Newsmap: a bank robbery on 1st Ave. in Manhattan, a possible abduction at 183rd St. and Webster Ave. in the Bronx, and a homicide on Cedarcroft Rd. and Home St. in Queens. A student at Stony Brook University was arrested for falsely reporting to police that he had been robbed at knife point on the Suffolk County school's campus. The newborn found by skateboarding teens on a Queens dumpster has......

The financial markets may be taking a hit lately, but Wall Street is still planning about $38 billion in bonuses this year. Bloomberg News reports that the money was thanks to "a record $9 billion of fees for arranging acquisitions and $5 billion for underwriting initial public offerings and sales of junk bonds." This translate to an average Goldman Sachs, Merrill Lynch, Morgan Stanley, Lehman Brothers or Bear Stearns worker getting over $200,000 in bonuses.......

The Securities and Exchange Commission charged 14 people in an insider trading ring that involved coded text messages on disposable cell phones, information from a Morgan Stanley lawyer, and secret meetings at the Oyster Bar. Wonder if they also shared information via the Whispering Gallery, too. The SEC says there were two schemes. One at UBS where an executive director gave tips to other traders for a share of the profits in cash. According......

Animal New York takes issue with Matthew Long, the firefighter hospitalized for almost six months after being injured during the transit strike and finally went home with much fanfare last week. Long was injured while biking to his stationhouse and a private bus (chartered by Bear Stearns for its employees) hit him; he is now suing the Transport Workers Union as well as Bear Stearns, and the van company. Animal New York says Long should......

Matthew Long, the man who was seriously injured during last December's transit strike (a private bus hit him as he biked to the stationhouse), has finally been released from the hospital. He's had 15 operations in the past five months and was only given a 1% chance of surviving: A doctor said, "He should be dead. Even the nurses in the ER thought what we were doing was an act in futility.". Long now spends......

If you're going to protest going to jail after leading an illegal transit strike for three days, then you might as well with the Reverend Al Sharpton, teachers union head Randi Weingarten, and about a thousand other supporters. And according to plan, many members of various unions are starting to view Roger Toussaint as a martyr, versus the main guy who inconvenienced the city (well, it's him and MTA Chairman Peter Kalikow). Toussaint headed......

It's not just the government who is mad at the transit union - it's the firefighter who was hit by a bus during the transit strike who is annoyed as well. Matthew Long is suing the Transport Workers Union, plus Bear Stearns and the charter bus companies it hired to shuttle workers. Long was hit by a shuttle bus that "suddenly and without warning violentaly made a right turn over multiple lanes" at Third Avenue......

While it was announced that the strike was over yesterday, commuters didn't really get to enjoy the fruits of that until this morning's commute, with subways and buses back in limited service (service will go back to "normal" or at least" weekend/holiday normal" over the next few days). Transport Workers Union President Roger Toussaint thanked New Yorkers for our "patience" - ahem! - while Governor Pataki says there will be no amnesty with workers'......