A Manhattan jury decided Tuesday that a Citigroup employee who sold a mortgage security without telling customers that the bank was betting against some of the underlying mortgages did not violate any securities laws. The Wall Street Journal characterizes the verdict as a blow to the Securities and Exchange Commission's effort to prosecute executives involved in the financial crisis.
The charges involved a collateralized debt obligation (CDO) that the Citi director, Brian Stoker, worked on in 2007. The SEC has filed charges against other executives at financial firms related to sales of mortgage securities.
The jury put out a statement arguing that its verdict "should not deter the SEC from continuing to investigate the financial industry."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
