Goldman Sachs Will Be A Little Less Fabulous, Self-Referential In 2013

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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]

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Fabulous Fab To Take The Stand Next Summer

Three years after Fabrice Touree was sued by the Securities and Exchange Commission for allegedly misleading investors, the (soon-to-be) Dr. of Economics and Love will go to trial, assuming finals don't pose a conflict. U.S. District Judge Katherine Forrest in Manhattan set the July 15 trial date at the end of a hearing in which an SEC lawyer argued that she should reinstate some claims against Tourre that another judge dismissed earlier in the case. Last year, U.S. District Judge Barbara Jones threw out some of the SEC’s claims after Tourre argued that he couldn’t be held liable under U.S. securities law for transactions that occurred outside the country. The SEC argued today that the claims should be reinstated because of a recent appeals court ruling that applied a broader definition of “domestic securities transaction” than the one used by Jones. Tourre’s case was assigned to Forrest last week. Tourre, 33, who is studying for a Ph.D. in economics at the University of Chicago, wasn’t present in the courtroom today. His lawyer, Pamela Chepiga, told Forrest that she will check with her client to make sure there is no conflict between his exams and the trial date. Goldman Sachs’s Tourre Gets July 15 Trial Date [Bloomberg]