Wednesday, August 1, 2012

Wall Street Exec Escapes Financial Crisis Charges




According to Reuters a former Citigroup Inc manager was found not liable on Tuesday of civil charges of misleading investors a blow to regulators in one of the few fraud cases brought against a Wall Street executive over the collapse of subprime mortgage investments.

Brian Stoker, who worked on the bank's mortgage investments desk, was charged by the U.S. Securities and Exchange Commission as part of a broader civil lawsuit against the bank.

At a two-week trial in U.S. District Court in Manhattan, the commission argued that Stoker failed to tell the buyers of a $1 billion Citigroup collateralized debt obligation that the bank had made a $500 million "short" bet that the mortgage pool would fail.  Stoker and his lawyer argued that he followed the bank's best practices and was singled out for blame…..


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