So much for change we can believe in at Mary Jo White's Securities and Exchange Commission.
Instead of doing the obvious and right thing and terminating the wholly gratuitous prosecution of the Fabrice 'Fabulous Fab' Tourre - which begins this morning in a Manhattan federal court - White is trying to make Tourre the poster child for the financial crisis of 2008.
This could not be further from the truth.
William D. Cohan writes:
A low-level vice-president such as Tourre has only one responsibility: to do what he is told to do and get deals done. Tourre was no more responsible for conceiving the Abacus synthetic collateralized debt obligation - the security at the heart of the SEC's civil lawsuit - than Trayvon Martin was for provoking his own death.
Like it or not, the Abacus deal was really no differently constructed than any other synthetic CDO manufactured and sold during the last decade. It's fair to question the morality and efficacy of such cockamamie deals, but there was nothing illegal about them.
Hit the link link below to access the complete Bloomberg article:
William D. Cohan is the author of the recently released Money and Power: How Goldman Sachs Came to Rule the World and the New York Times bestsellers House of Cards and The Last Tycoons.
Cohan is a contributing editor at Vanity Fair and writes frequently for Financial Times, Fortune, The Atlantic and The Washington Post. He worked on Wall Street as a senior mergers and acquisitions banker for 15 years. He also worked for two years at G.E. Capital. Cohan is a graduate of Duke University, Columbia University School of Journalism and Columbia University Graduate School of Business. The Last Tycoons won the 2007 Financial Times / Goldman Sachs Business Book of the Year Award.