SEC Probes Firm That Sold CDOs To Schools

A few years back, Planet Money and the New York Times told the story of a Wisconsin school district that bought CDOs — the complicated investment products that were at the heart of the financial crisis — without really knowing what they were getting into.

Now, the firm that pitched the CDOs to the schools may face charges from the government. The firm, Stifel, Nicolaus, recently received a "Wells Notice," which is what the SEC sends companies when it intends to take action against them. The company says it believes "enforcement action is not warranted."

For more: Here's a story from St. Louis Post-Dispatch, a filing from the company, our original podcast, and the NYT story. Copyright 2011 National Public Radio. To see more, visit