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 »
(Before a season-ending injury that might’ve strained his tendons but never broke his spirit!) Read more »
While it appears the firm is digging in for a fight, don’t count out an eventual settlement of the suit, most likely right before it goes to court. Goldman would probably rather pay the fine and move on rather than have all of its emails and other internal correspondence aired in public.
From the response, it appears Goldman is gearing up to make Fabrice Pierre Tourre, aka Fabulous Fab, the fall guy. The bank seems pretty confident that the official offering document for the Abacus deal never misled anyone about who was selecting the underlying mortgages. Read more »