(Before a season-ending injury that might’ve strained his tendons but never broke his spirit!) Read more »
Fabrice Tourre
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Fabrice Tourre Will Beat These Financial Crisis Charges, Just Like He Beat The Fightin’ Friedmans
By Bess Levin
UBS would like to make a mortgage-backed securities case—apparently linked to every other mortgage-backed securities case—go away. Read more »
Former Goldman Sachs trader Fabrice Tourre has only one tie left to the securities firm where he helped assemble an infamous bond deal: his legal bills. Mr. Tourre no longer works for Goldman, which put him on paid leave after the Securities and Exchange Commission accused him in April 2010 of misleading investors in a collateralized debt obligation called Abacus 2007-AC1. Goldman soon settled related allegations, but Mr. Tourre decided to fight. Since late 2011, Mr. Tourre has been a graduate student in economics at the University of Chicago, and Goldman changed his status to unpaid leave. He left the firm at the end of December 2012, a company spokesman said…The SEC’s lawsuit instantly made Mr. Tourre one of the most memorable names of the financial crisis. In an email to a friend that was disclosed by the agency, Mr. Tourre wrote: “The whole building is about to collapse anytime now … Only potential survivor, the fabulous Fab[rice Tourre] … standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!” [WSJ]
Goldman Sachs’s former resident of fabulousness is going back to school. Read more »
The U.S. Securities and Exchange Commission’s lawsuit against Fabrice Tourre should be thrown out, lawyers for the Goldman Sachs Group Inc. trader accused of misleading investors in a product linked to subprime mortgages told a federal judge. Andrew Rhys Davies, Tourre’s lawyer, said yesterday that the SEC is trying to circumvent a U.S. Supreme Court ruling issued in June, Morrison v. National Australia Bank, that limits the reach of civil claims for acts occurring outside the U.S. “The SEC is attempting to do an end run around Morrison,” Rhys Davies told U.S. District Judge Barbara Jones in Manhattan. [Bloomberg]
As you may remember, prior to his flogging on Capitol Hill, we were privy to Goldman Sachs employee Fabrice Touree’s emails to lady-friend he was looking to bed. He did so by begging off the “fabulous” titles (“I’m not fabulous, you’re fabulous”) and laying it on embarrassingly thick with Marine Serras (with lines like “[My friend Mitch] would call me the fabulous Fab even though there is nothing fabulous about me, just kindness, altruism and deep love for some gorgeous and super smart French girl in London”). In its recently released “who to blame for the crisis” report, the FCIC thought it prudent to release a few more excerpts. Read more »
ProPublica reports that JPMorgan is being investigated by the SEC to determine whether or not the bank adequately disclosed to investors that the securities that went into a CDO were selected by hedge fund Magnetar Capital, which was betting against the deal (JPMorgan apparently lost approximately $880 million on the deal and what’s more). Two problems seem apparent up front– one, unlike Goldman Sachs, whose CDO had the badass name of ABACUS, JPMorgan’s version is called “Squared.” And two, no one has said anything about the role of a Frenchman who describes himself as “fabulous” and writes gushy emails to his ex-girlfriend on the company dime. That’s not going to bode well for JPMorgan when it comes time for Congress to decide whether or not this thing is worthy of a hearing and/or Senator Carl Levin describing it as “shitty” 700 times on live TV. Given that everything on Wall Street is a competition, and JPMorgan is no poor man’s Goldman, I’m going to go ahead and tip off JD and Co as to the only way they’re going to be able to come out on top of this thing. If this woman’s involvement in the deal comes to light: Read more »
The following post is by Dealbreaker reader and commenter Infinite Guest.
Whether they could have avoided it, I don’t know–today’s Securities and Exchange Commission acts like a wounded animal–the management of Goldman, Sachs & Co. made a strategic error by failing to cultivate a closer relationship with the new regime. That much is evident from the fact that the suit came as a surprise. Chairman Schapiro is quite capable of partnering with industry: Had Goldman done better, earlier, there might never have been a lawsuit. Popular wisdom says that Goldman should settle. I disagree. Although both parties understand that cooperation beats enmity, the SEC chose not to cooperate; and now, Goldman’s best strategy is to respond in kind. Read more »
* 9:45: Fifteen minutes to go. Disappointingly, His Fantabulousness and Lloyd Blankfein are on separate panels, meaning no opportunity for potential backhands to the face. No matter. There’s gonna be a showdown. So while we wait:
[I have it on good authority that Lloyd and Lucas have rehearsed the above moves and will be performing them at intermission.]
* 9:57: The “Pink Ladies” have traded in their standard uniforms for prison garb. Good one, ladies.
* 10:03: Carl Levin (NO RELATION) is telling us why we’re here. Goldman Sachs took advantage of its clients, yada, yada, yada.
* 10:04: That’s right, cameraman, focus on The Fab (who’s grown his hair a little longer and is looking kind of hot).
* 10:09: Carl: “Goldman Sachs treats clients like objects (of profit).” Jackie Treehorn, a former prop trader, was the first to pioneer this model at the firm.
* 10:16: Goldman made money off its shorts. Dun Dun Dun.
* 10:26: Apparently Goldman didn’t just hurt its clients, it hurt everyone in the world. Take a moment right now to show us on the doll where Goldman touched you.
* 10:28: Going to interrupt Carl for a moment to announce that Melissa Francis gave birth last night to her second son (with husband Wray). The kid’s name is Greyson Alexander Thorn. May he grow up to be a Goldman banker.
* 10:32: Senator Susan Collins: I’m very discreet…but I will haunt your dreams.
* 10:38: According to Suzy, we’re not here to celebrate the fact that Goldman Sachs made some money during the crisis. Which means I’ve made a terrible mistake. Reader poll: cancel the stripper cake, even though she’s already inside? Or just say fuck it? Why should this lady get to say what’s what?
* 10:40: Senator Claire McCaskill is just going to throw words out there, arrange them in any way you like: bets, odds, bookies, tranches, waterfalls, golden showers, clown-facing, pit bosses, Las Vegas, street gamblers, KGB.
* 10:44: SENATOR MARK PRYOR: “I MAY NOT UNDERSTAND EVERYTHING ABOUT EVERYTHING ON WALL STREET.” Read more »
Fabrice Tourre: “I deny — categorically — the SEC’s allegation. And I will defend myself in court against this false claim.”
By Bess Levin
Here’s what Mr. Fantabulous is going to say in about an hour. Imagine this read with what one hopes is (fingers-crossed) a thick accent and an general attitude of “Let’s make zees quick, I have a match to be at by noon. Idiots.” Read more »
Entertain the thought of crossing him and he'll burn them off.
They seem to have all but made him the fall guy for this little matter with the SEC but do not be deceived, ladies– Goldman Sachs has got Fabrice Tourre’s back! The firm told Charlie Gasparino that Mr. Fantabulous would’ve been canned a while ago if they thought he’d done anything that could get them into any legal trouble. Read more »
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