Bear Stearns hedge fund managers set to face the fire

Two former Bear Stearns hedge fund managers are on trial in one of the few criminal cases brought against Wall Street executives in connection with the collapse of the housing market. Ralph Cioffi and Matthew Tannin face charges that they misled clients about the grim outlook for investments in subprime mortgages as the market soured in 2007. Federal prosecutors say the two men saw problems looming. They say the pair expressed concern in internal e-mails that their fund was headed for a meltdown. Yet investigators say the pair hid those worries from investors. Defense attorneys say the men are being made scapegoats for the financial crisis. Opening statements are set for Wednesday afternoon.