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.

Related

Sections

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

Law Firms

Companies

Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.