Ralph Cioffi and Matthew Tannin are close to becoming the first two criminal indictment casualties of the subprime crisis, The Wall Street Journal reports this morning.

The U.S. Attorney General's Brooklyn Office is on the verge of charging the two with securities fraud, lawyers close to the investigation say, having allegedly found evidence that Cioffi and Tannin expressed concern over weakness in the secondary mortgage market to colleagues at Bear Stearns, all the while touting its resilience to investors.

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