By Evan Weinberger
April 4, 2011
The U.S. Securities and Exchange Commission has reportedly begun preparing a civil case against Wachovia Corp. alleging the bank pumped up the prices for collateralized debt obligations, but observers say actually filing and winning such a case will be difficult given that most of Wall Street made the same CDO mistakes.
“The SEC would have to prove that the bank knew they were selling garbage,” said Ronald Colombo, a professor at Hofstra University School of Law.
Read the full article at law360.com.