|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
Ex-Citigroup Official Brian Stoker Wins Trial In SEC Lawsuit
Bob Van Voris And Emily Grannis
Bloomberg. August 1, 2012
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EXCERPT: Former Citigroup Inc. official Brian Stoker defeated the U.S. Securities and Exchange Commission in a trial involving a deal at the center of the bank's proposed $285 million settlement with regulators over subprime residential mortgage securities. The jury reached its verdict yesterday in Manhattan federal court. The SEC accused Stoker, the former director of Citigroup's collateralized debt obligation structuring group, of violating securities law in putting together the assets underlying a $1 billion CDO squared, or a CDO made up of CDOs. The SEC claimed New York-based Citigroup structured and sold the CDO in 2007 without telling investors that it helped pick about half the underlying assets and was betting they would decline in value by taking a short position. "This verdict should not deter the SEC from continuing to investigate the financial industry, to review current regulations, and modify existing regulations as necessary," the jury said in rendering its decision that Stoker wasn't liable. |
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