Goldman Sachs has confirmed that it continues to support Fabrice Tourre, the employee at the centre of the firm's CDO fraud charge.
Firm spokesperson Lucas Van Praag has told Fox Business News that it continues to believe that 'Fab' has done nothing wrong: 'If we didn't, this guy would have been fired immediately'. And ,if asked, Goldman CEO Lloyd Blankfein is expected to tell the Permanent Subcommittee on Investigations Tuesday that although he may be somewhat immature and have displayed a lack of judgement by sending out those questionable e-mails, Fab is basically sound.
One banker told Here Is The City: 'It comes as no surprise that Goldman is standing by its man. It seems to me that they stand or fall together. But I'm not too sure I'd like to have the future wellbeing of my firm in the hands of 'fabulous Fab', all round good egg though he may be'.
In the meantime, Fox reports that Goldman's hedge fund clients are sticking with the firm. One unnamed hedge fund type told the business channel: 'I don't think a single client globally will leave'.
And finally, it seems that Goldman's rivals are remaining on the sidelines and not trying to exploit the firm's current difficulties by attempting to take away business. One banker told Here Is The City: 'There's a kind of 'there but for the grace of God' mindset here. And although many of Goldman's rivals will enjoy the firm's discomfort, none of them will want to see the industry they are part of permanently damaged by these allegations'.