Goldman's 'Fabulous Fab' Gets Trial Date

Red Faced Blankfein

Goldman SachsFabrice Tourre will go to trial July 15 in the U.S. Securities and Exchange Commission’s lawsuit accusing him of misleading investors in a collateralized debt obligation.

Bloomberg reports that U.S. District Judge Katherine Forrest in Manhattan set the trial date at the end of a hearing Thursday 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.

Tourre hit the headlines in 2010, after a number of emails he had sent to girlfriends were made public by Goldman Sachs.

Here are some of the e-mails:

1. 'Just made it to the country of your favourite clients (Belgians)!!! I have managed to sell a few Abacus bonds to widows and orphans that I ran into at the airport, apparently these Belgians love synthetic ABS CDO2!!!!'.

'Not feeling too guilty about this, the real purpose of my job is to make capital markets more efficient and ultimately provide the US consumer with more efficient ways to leverage and finance himself, so there is a humble, noble and ethical reason for my job.....amazing how good I am in convincing myself!!!'.

2. 29/01/2007

'Yup. work is still as laborious, it's bizarre I have the sensation of coming each day to work and re-living the same agony - a little like a bad dream that repeats itself....

In sum, I'm trading a product which a month ago was worth $100 and which today is only worth $93 and which on average is losing 25 cents a day.....That doesn't seem like a lot but when you take into account that we buy and sell these things that have nominal amounts that are worth billions, well it adds up to a lot of money.

When I think that I had some input into the creation of this product (which is by the way a product of pure intellectual masturbation, the type of thing which you invent telling yourself: 'well, what if we created a 'thing', which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price ?') it sickens the heart to see it shut down in mid-flight......It's a little like Frankenstein turning against it's own inventor :)'.

3. 07/03/2007

'I will give you more details in person on what we spoke about, the summary of the US subprime business situation is that it is not brilliant.

According to (head of Goldman's subprime business Daniel) Sparks, that business is totally dead, and the poor little subprime borrowers will not last long!!

All this is giving me ideas for my medium term future, insomuch as I do not intend to wait for the complete explosion of the industry......'

4. 'I have 'to mentor' the others, in view of the fact that I am now considered a 'dinosaur'. In this business (at my firm the average longevity of an employee is about 2-3 years!!) people ask me about career advice. I feel like I'm losing my mind and I'm only 28!! Ok, I've decided two more years of work and I'm retiring'.

Goldman Sachs’s Tourre Gets July 15 Trial Date

The Goldman 'Girlfriend' E-Mails - How To Ruin A Career & Compromise Your Firm

 

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