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...
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Case Information

Case Title

U.S. Securities and Exchange Commission v. Stoker


Case Number

1:11-cv-07388

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

Jed S. Rakoff

Date Filed

October 18, 2011

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