Strong enforcement presence in CDO markets is a chief priority of government regulators, Robert Khuzami, the Securities and Exchange Commission’s director of enforcement, told CNBC Tuesday.
“In the CDO world, there’s a lack of price transparency, a lack of liquidity, a lack of governance controls…all the safeguards that you rely upon to make sure that investors are protected are often not there,” Khuzami said. “And that’s why a strong enforcement presence is critical.”