Five Wisconsin school districts suing over investments made two years ago were given "significant disclosure" of what was in those deals and represented themselves as sophisticated investors, an official with a financial institution targeted by the lawsuit said Tuesday.
"We made full disclosure of the merits and the risks associated with these transactions, and we were never guarantors in any fashion of the performance of those investments," said David DeYoung, senior vice president and managing director of the Wisconsin public finance unit for St. Louis-based Stifel, Nicolaus & Co. Inc.
Stifel acted as no more than a placement agent in the transactions, DeYoung said. In that capacity, the firm connected the five districts to Royal Bank of Canada, which sold them complex financial products as a way to help fund retiree benefits, and DEPFA Bank in Ireland, which lent the districts most of the money to buy the investments, he said.
"We had a very limited role in this," DeYoung said.
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