CDO Not Made To Fail, Citigroup's Stoker Tells Jury

Law360, New York (July 26, 2012, 7:38 PM EDT) -- Ex-Citigroup Inc. executive Brian Stoker told jurors on Thursday that he did not build a collateralized debt obligation to fail, taking the stand in his defense in a U.S. Securities and Exchange Commission lawsuit over his role in the doomed financial product.

Stoker denied SEC claims that Class V Funding III — a synthetic CDO he, as deal manager, helped create — was meant to crash so that the bank could cash in on a $500 million short position it hid from investors.

The bank itself...
To view the full article, register now.