The New York Times, February 5, 2012 - "A Wipeout That Didn't Have to Happen"

Gretchen Morgenson's "A Wipeout That Didn't Have to Happen" reports on research done at SLCG into collateralized loan obligations (CLOs) underwritten by Banc of America, Citigroup and other firms in 2007 which resulted in a $1.4 million FINRA award in the case of Hayes v Banc of America Securities. In Collateralized Loan Obligations, Warehousing, and Banc of America's Undisclosed Losses, Tim Husson, Craig McCann, and Olivia Wang document two examples of CLO offerings in which Banc of America appears to have transferred at least $35 million of losses to investors in July 2007 and which ultimately led to approximately $150 million in losses. Banc of America Securities sold one of the problematic CLOs they identified, LCM VII, to Mr. Hayes.

Craig J. McCann