The SEC says Crittenden was briefed on valuation issues relating to the super-senior tranches of CDOs in early September 2007 and that Tildesley found out in September that there were disclosure issues because the CDO and liquidity put amounts were missing.
Hedge funds and other speculative distressed-debt investors have been buying the senior positions, or tranches, of airline equipment trusts, giving them some cover for their at-risk investments in the lower tranches and giving them a say in the restructuring of the airline itself.