SEC Presses Citigroup's Stoker On Handpicked CDO Assets

Law360, New York (July 27, 2012, 4:58 PM EDT) -- The U.S. Securities and Exchange Commission pressed Brian Stoker at trial Friday on the former Citigroup Inc. collateralized debt obligation structurer's role in selecting assets to be included in an ill-fated CDO that Citigroup created and bet against without warning investors.

On cross-examination by the SEC, which has accused Stoker of misleading investors by failing to tell them Citigroup had selected the assets included in the CDOs that quickly collapsed, Stoker testified that he had been approached by traders at Citigroup's secondary trading desk, including the...
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