The 2010 complaint and consent, read against the deal's own offering material
- Origin
- A federal securities regulator; and the deal's marketing pack
- Dated
- deal 2007; complaint and settlement 2010
- Extent
- complaint 22; consent 9; offering material, relevant pages 14 pages
- Status
- accepted
- Redactions
- Counterparty account numbers. Nothing else. The bracketed notes are ours and are marked as ours.
Chain of custody
The complaint and the consent have been public since 2010. The offering material was obtained by this newspaper from a party to the transaction, who supplied it on the condition that we publish the pages we relied on rather than characterising them, which we regard as an entirely reasonable condition and have met. The pages are published with this story.
Held by: They Buried, document room; the relevant pages mirrored publicly
Excerpt
[From the offering material — the portfolio selection agent is named, and described as having selected the reference portfolio.] [Not present anywhere in the offering material: that a party with a short position in the transaction participated in selecting the reference portfolio.] [From the consent — the settling party does not admit the allegations. It admits that the marketing materials for the transaction contained incomplete information.]
Transcribed by the data desk. Line breaks follow the original. Bracketed matter is ours.
Editor's note
Filed for the consent rather than the complaint. 'Incomplete information' is an admission about a document rather than about a person, it is exactly true, and it settled a case about a billion dollars. The document desk has not found a better sentence in any settlement it holds.
Cited in
- Somebody Picked The Loans, Then Bet They Would Fail.Money & Mechanisms · Aug 10