West Palm Beach (HedgeCo.net)- The Hang Seng Index posted its biggest single-day loss in a month, as investors fretted about the recurring subprime credit crisis in the United States and its impact on regional banks and other financials.

"It’s a very bad day for financial markets across Asia. What’s happening to Fannie Mae and Freddie Mac is a clear indication of more troubles ahead in the mortgage market. What the U.S. Treasury is doing smacks of political desperation rather than genuine concern for the financial markets," said Benjamin Collett, head of hedge fund sales trading at Daiwa Securities SMBC Co. in Hong Kong.

The U.S. Treasury also announced plans to rescue Fannie Mae and Freddie Mac, further fuelling fears that the subprime crisis may have intensified.

"While Chinese banks are sound and have very little exposure to subprime, the market is trading very short term and the selloff in the financial sector is just an extension of the overall market moves." Collet said.

The Hang Seng Index lost 3.8 percent, closing at the lowest since March 20.

Alex Akesson
Editor for HedgeCo LLC
Email: alex@hedgeco.net

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Seattle Post- Incriminating messages allegedly sent by two ex-Bear Stearns Cos. hedge fund managers indicted on fraud charges that even sophisticated professionals disregard the dangers of putting sensitive information in e-mails, ex-prosecutors said.

Ralph Cioffi, 52, and Matthew Tannin, 46, were charged last week with misleading investors by saying two funds were thriving while knowing subprime-mortgage investments threatened their collapse. The indictments, the first relating to the subprime crisis, cited e-mails from both business and personal accounts describing looming problems. Investors in the funds ultimately lost $1.6 billion.

"It is pretty dumbfounding that people still use e-mail in such a casual way," said Carol Bruce, a former federal prosecutor now with law firm Bracewell & Giuliani in Washington. "But they do — and they will into the foreseeable future."

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FOXBusiness- With record losses from the subprime and credit crisis veering towards the $400 bn mark, here come the market police.

In the crosshairs: Hedge funds, including the indictments of the two Bear Stearns hedge fund managers.

A senior law enforcement official said in an interview that hedge funds now sit at the top of the hit list of federal investigations into the subprime crisis, including at the Department of Justice and the Federal Bureau of Investigation. Expect more announcements of hedge fund indictments in coming days, sources say.

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