Fabrice Tourre

Former Goldman Sachs employee Fabrice Tourre hasn’t had a great year. In August, a federal jury found him “liable on six of seven claims that he violated federal securities law by intentionally misleading investors,” in addition to “aiding and abetting an alleged fraud by Goldman.” In March, a judge ordered to pay $825,000 ($175,463 in gains related to the deal that investors were misled on, $650,000 in civil penalties). That same month, the University of Chicago, the place that Fab fled to after leaving Goldman Sachs to rebuild his life as an academic, decided it didn’t want him teaching it undergrads. So, things have been tough. But while he may not have the support of his ex-employer, the securities industry, Judge Katherine Forrest, or 100% of Chicago’s economics department faculty,1 he does have this: Read more »

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 »

He did get off on one of the seven counts against him, so… Read more »

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]