While most Goldman Sachs employes are busy starting new hedge funds or preparing for new jobs, like central bank president or chief economist for a major European bank, Fabrice Tourre stands as the only Goldman banker to face a trail. However, something strange happened recently, something that may spin the case in an unexpected direction.
“It’s impossible that only one person was involved with fraudulent activities in connection to the sales of these mortgage securities.”
G. Oliver Koppell
Yeah, yeah…we know that… The “Fabulous Fab” is just a trader who carried out the order of his superiors. An order that was very simple and impossible to misunderstand: “Make money!” It is, however, harder to figure out how a newspaper accidentally gets hold of a laptop, accidentally found in the trash, accidentally containing crucial evidence.
But that seems to be the case at moment – the mysterious laptop, that is.
The New York Times published recently a long article about Fabrice Tourre, who as of now stands as the only Goldman Sachs employee charged individually in the firm’s CDO follies.
Tourre appears to be keen on fighting the civil charges in court, something that, according to US financial media, has caused a little bit nervousness amongst the top Goldman Sachs executives.
Many have suggested that Tourre in fact has little choice but to engage in a scorched earth defense in an attempt to make it clear that many people are to blame for the scandal, besides himself.
Fingers have been pointing at his boss, Jonathon Egol, and questions raised on why he was not charged.
The article explain that a New York filmmaker was given a laptop by a friend who claimed it had been found in the trash.
Amazingly, it had many email to Fabrice Tourre on it. Including several emails from Egol that suggest he had a dire view of the market, one that Tourre didn’t necessarily share.
And even more amazing – the emails continues to stream in.
According to Fierce Finance, it is likely that others will be drawn into the center stage.
Indeed, it would be remarkable if Tourre alone is found guilty. That would mean that one single trader is capable of taking down the whole global economy!
The NYT indicates that Tourre has been made a scapegoat, and that other Goldman executives should be charged.
One interview suggests that Tourre was targeted because he was prone to logorrhea, unlike his colleagues.
Everything is set for a very interesting case. But a case built on email is not necessarily a strong one.
“Perhaps, the SEC should make one final push to settle,” Fierce Finance writes.
Of course! Now, I get it….
Why Goldman should be hoping that SEC drops Fab case
Fabrice Tourre, a minor player in larger CDO drama
- The Truth, Some Truth And Something Like The Truth
- Goldman’s Collateralized, Securitized And Synthesized Fraud
- Goldman Sachs Charged With Fraud – Here’s The SEC filing