Fabrice Tourre

Technically he hasn’t yet completed his doctorate program and, yes, he’s only served as a TA for other people’s courses so far, but maybe just sleep on it, Chicago. He could really use the cash. Read more »

At least the undergrad program is; the graduate department is still willing to expose its students to his fabulousness. Read more »

To help inject humor into what was an otherwise intense process, Ms. Rhett said she and other jurors compared the lawyers’ likenesses to actors. “I’m only going to say that there was someone who looked like Dan Aykroyd, someone who looked like Kevin Spacey and someone who looked like a cross between Patrick Stewart and Stanley Tucci,” she said. But when it came time to consider the seven claims against Mr. Tourre, they moved methodically and efficiently. The group chose 52-year-old Steven Zucker, a former retail broker on Wall Street who is now co-dean for art and history at the Khan Academy, a nonprofit educational organization, to be foreman. The jurors devised rules, and Mr. Zucker would call on people to speak. The jurors strove to begin on time every morning and worked through lunch, which consisted of sandwiches of grilled chicken and ham and cheese, in addition to soda and leftover muffins from the morning. [WSJ, earlier]

Poor Fab! I, for one, was utterly persuaded that he didn’t commit securities fraud by sending an email that he admitted was “not accurate” but not “false,” but the significance of that distinction seems to have eluded the jury:

A federal jury found former Goldman Sachs Group Inc. trader Fabrice Tourre liable for misleading investors in a mortgage-linked deal that collapsed during the financial crisis, delivering a historic win for a U.S. regulator eager to prove its mettle inside the courtroom.

The panel of nine jurors reached their verdict during the second day of deliberations, finding Mr. Tourre liable on six of seven claims that he violated federal securities law. … Mr. Tourre, who left Wall Street to pursue a doctorate in economics, may face a fine and a ban from the securities industry.

I think it’d be a shame to deprive the securities industry of Fab’s financial-structuring creativity and proclivity for sending embarrassing emails, but as we’ve established I’m in the minority here. Read more »

Presumably, out there in the universe exists at least a handful of people for whom words and phrases like “Which tranche of this collateralized debt obligation would be the fulcrum security in a liquidation scenario?” constitute foreplay, or, at the very least, interest them in the slightest/don’t cause them to nod off like they just got shot with a tranquilizer gun. You may not have found them yet, but if you’ve got the will, there’s surely a way to locate these CDO nymphos. Put out a personal ad, maybe start a website. Walk up and down Park Avenue wearing a sandwich board that reads “My lawyer’s going to help me make an end run around your CDO’s indentures.” Post fliers in Penn Station. Inquire at your neighborhood coffee shop. One place you can save time by skipping over is the jury room where Fabulous Fab’s fate is being decided. Read more »

The defense team for Fabrice Tourre, the former Goldman Sachs trader accused of defrauding investors in a mortgage deal six years ago, began its case about 11:47 a.m. One minute later, it rested without calling any witnesses — not even John Paulson, the billionaire whose hedge fund played a big role in the security at the heart of the trial. That decision, following more than two weeks of witnesses called by the Securities and Exchange Commission, highlights the confidence of Mr. Tourre’s lawyers in their fight against a civil lawsuit by the government over the mortgage deal. The move means that closing arguments from both sides will take place on Tuesday, and the jury will begin deliberations on Wednesday. “Fabrice has testified in the S.E.C.’s case, and ending things short allows the defense to underscore to the jury where the burden of proof lies – that is squarely on the S.E.C.,” said Susan Brune, who successfully defended Matthew M. Tannin, one of two former Bear Stearns executives acquitted in 2009 on charges they misled investors in their mortgage-backed securities hedge funds. [Deabook]

  • 29 Jul 2013 at 10:26 AM

Fabulous Fab Really Wanted To Get Abacus Done

Fabrice Tourre testified in his SEC trial late last week and many perplexing things came out, with the most perplexing being a tie between:

Perhaps less perplexing is that Fab’s feelings about Abacus seem to have been less about bamboozling one client on behalf of another and more about just printing a trade, whichever direction it went in. John Carney reports that Goldman was taking too long getting ABN Amro to intermediate ACA’s guarantee of the super senior tranche of the deal, Paulson was getting antsy, and Fab, ever servicey, was trying to assuage their antsiness by just getting Goldman to do the deal naked: Read more »