Bloomberg reports that Stoker, 41, will focus on the sale of structured products such as collateralized debt obligations, or CDOs, and mortgage-backed securities, according to Sohail Khan, a StormHarbour managing principal and former Citigroup executive. Stoker started yesterday as a Managing Director and will have more responsibilities 'over time', Khan said.
The hire comes three months after a jury cleared Stoker of any wrongdoing in a $1bn CDO offering Citigroup sold in 2007. The U.S. Securities and Exchanges Commission alleged that the New York-based bank failed to tell investors that it had picked about half of the CDO’s underlying assets and was betting they’d decline. Stoker, who helped to structure the deal, argued that he wasn’t responsible for the way the deal was pitched to investors.
'Was I concerned ? Did I think about it before we offered him a job ? Yes I did', Khan, 40, said in a telephone interview.'This is a guy who took the road less traveled and came out clean. I’ve known him and I’ve a lot of faith in him personally and as a firm we’re going to stand by people who do the right thing'.
The SEC sued Stoker and Citigroup separately. The Washington-based regulator said that Stoker knew or should have known that Citigroup was creating the CDO deal so it could bet against the assets, which he failed to tell investors. His lawyers argued that the clients who bought into the offering were sophisticated investors who knew what they were doing.
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