“More and more leverage in the system, The whole building is about to collapse anytime now…Only potential survivor, the fabulous Fab…standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!” (sic) Fabrice Tourre, aka “The Fabulous Fab”
From time to time I’ve posted snippets about Mr. Tourre, that young V.P. at Goldman Sachs whose private musings sent over the company’s email system to his French girlfriend became grist for the government’s case against him and his company. [Consistent with my jaded and cynical view of the government’s cherry-picking underlings to pursue – rather than the Big Dogs – one has to wonder what’s in this for the Feds. Perhaps in a voyeuristic sort of way, this “pillow talk” is how they get their excitement, since they’ve proven over the last five years, they are prosecutorally impotent when it comes to enforcing the laws against those who most deserved it. – PCQ]
Now, as the Wall Street Journal put it in today’s, April 27, 2013 online edition, Mr. Tourre is:
“…the last man standing in one of the Securities and Exchange Commission’s biggest postfinancial-crisis enforcement cases.”
The reason is explained thusly:
Goldman in July 2010 agreed to pay $550 million to settle the SEC’s complaint, without admitting or denying the allegations. The firm acknowledged its marketing materials on Abacus “contained incomplete information” by not disclosing Paulson’s role in the deal. Mr. Tourre refused to settle and continues his legal fight to clear his name. A trial is slated to begin in July. A spokesman for Goldman declined to comment. Mr. Tourre declined to discuss his case, saying the situation is “too complicated.”
Now, three years later, Mr. Tourre is studying for his doctorate in economics at the University of Chicago. Fortunately, his alma mater, Goldman Sachs, is covering his legal bills. I suspect regardless of the outcome of the trial, this 30-something love-struck guy will land on his feet. ~PCQ
