Goldman Sachs man must defend himself, court rules

The only individual accused in the collateralised debt obligation scandal for which Goldman Sachs paid a $550 million fine last year, London-based Fabrice Tourre, will have to defend himself against a slimmed-down Securities and Exchange Commission lawsuit, a New York judge ruled.

by Bernard Purcell
Monday, June 20th, 2011

US District Judge Barbara Jones threw out claims by German and Dutch banks as they were not covered by the relevant US law but said Mr Tourre would still have to defend himself against the charge he was principally responsible for ABACUS-AC-1, the billion dollar CDO at the centre of the lawsuit, and “knowingly, recklessly or negligently” misrepresented the CDO to clients.

Earlier this year, the US Senate found Goldman Sachs was selling the mortgage swaps to certain clients as a good buy
while secretly betting against their collapse in value.

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About The Author

Bernard Purcell is Tribune's Chief Reporter
  • http://twitter.com/parisfrance2011 CAROLINE

    I think it fair that Fabrice Tourre as any unscrupulous  New york based trader will have to stand trial and explain his motives in creating this monstruous “CDO” ABACUS which left people in financial ruin, just for his own bonus  and for writing those crual emails bragging about his genius. Pathetic. This collpase though did not cost him a dime and he is still on paid leave and accepted that his legal fees be paid by his employer.Those sharks lack any form of decency and morality.

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