Several filers cited subjects for providing misleading information about real estate securities or securitized commercial mortgages. One filer cited a former Chief Executive Officer (CEO) for failing to disclose investment risks in certain CDOs, CMOs and trust preferred securities. The CEO had managed the investment portfolio, supposedly with a “very high” rate of return, and received large bonus payments. Later, the filer determined the CEO had misled bank management about the risks. As the economy declined, the securities’ revaluation resulted in large losses, leaving the bank in an unsound financial position. In another example, a filer reported.
