Goldman's 'Fabulous Fab' Loses Court Ruling

Gavel

Former Goldman Sachs salesperson Fabrice Tourre lost a bid for a ruling that he wasn’t liable under U.S securities laws for foreign transactions while the U.S. Securities and Exchange Commission won a ruling that Tourre violated a provision of U.S. securities law.

Bloomberg reports that Tourre had sought summary judgment, or a ruling before trial, in a lawsuit filed against him by the SEC. U.S. District Court Judge Katherine Forrest in Manhattan this week denied his motion and granted the SEC a partial ruling that Tourre had violated a provision of the Securities and Exchange Act.

Tourre, citing a 2010 U.S. Supreme Court ruling, claimed he couldn’t be held liable under U.S. securities laws for foreign transactions, such as those he made for Dusseldorf, Germany-based IKB Deutsche Industriebank, which allegedly lost almost all of its $150m investment, and ABN Amro Bank, which assumed the credit risk associated with a portion of a CDO called Abacus.

Under the Morrison v. National Australia Bank ruling by the Supreme Court, Tourre argued the SEC’s claims should be dismissed because they involved transactions outside the U.S.

Hit the link below to access the complete Bloomberg article:

Ex-Goldman Sachs Trader Tourre Loses Bid for Partial Ruling

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