Home » abacus » best investment » fabrice tourre » fabulous fab » financial crisis » fraud » goldman sachs » investment group » investment management » investments » Market » Mutual Funds » Personal Finance » sec » stocks » Ex-Goldmanite 'Hebat Fab' Tourre

Ex-Goldmanite 'Hebat Fab' Tourre

Amid a broader crackdown on the securities industries, the Securities and Exchange Commission secured one of their most high profile victories on Thursday, as a jury in New York found former Goldman Sachs trader Fabrice Tourre liable of civil-fraud. Tourre is one of the most visible faces of Wall Streethubris during the financial crisis, having been found to mislead investors in a mortgage-backed securities deal that netted billionaire John Paulson’s hedge fund $1 billion just as the housing bubble was bursting. The jury’s decision puts the focus on Tourre’s defense team, bankrolled by Goldman Sachs, which days ago chose not to call any witnesses to the stand in an apparent show of confidence. The case was centered on Abacus 2007 AC1, a mortgage-backed security (MBS) that Goldman helped to build and Tourre sold, and hits at the core of what major Wall Street banks were doing in the buildup to the financial crisis. Goldman Sachs then brought in financial firm ACA to work with Paulson in selecting the mortgages that made up the MBS. Tourre then turned around and offered the security to clients, using language the jury found to be purposefully misleading, masking Paulson’s intention to short the security, and in some cases masking his involvement in the deal. Andrew Ceresney, co-director of the SEC’s enforcement division, said: “we are gratified by the jury’s verdict finding Mr. Tourre liable for fraud. Goldman Sachs had settled the case with the SEC for half a billion dollars in 2010, while Tourre chose to fight the charges.

di 2:00 AM
 
Copyright Login MI All Rights Reserved