Embarrassed Goldman trader has smashing time in court

Water Carafe

So much for trying to look cool.

Reuters reports that Fabrice Tourre, the former Goldman Sachs trader accused of secretly helping the hedge fund of billionaire John Paulson construct a $2bn deal it could bet against, said Wednesday an email he sent to a key participant in the investment was inaccurate.

Tourre, 34, made the statement after taking the stand in the eighth day of what has become the highest-profile trial to come out of the U.S. Securities and Exchange Commission's investigations of the 2008 financial crisis.

The trial is a chance for the SEC to show it can win big cases against individuals on Wall Street for wrongdoing that caused the financial crisis.

SEC lawyers say Tourre was driven by 'Wall Street greed' to mislead investors in the infamous investment called Abacus 2007-AC1. Tourre denies any wrongdoing.

Bloomberg reports that SEC lawyer Matthew Martens questioned Tourre for almost two hours, trying to prove that he was the source of the misinformation about Paulson, a Goldman client that initiated the deal, helped choose the portfolio of 90 residential mortgage-backed securities underlying it, and then made a huge profit when Abacus failed.

Tourre, dressed in a black suit, white shirt and purple tie, testified in French-accented English. Early in his testimony, he knocked a closed water carafe off the witness box, and grinned with embarrassment after it crashed to the floor. Martens walked over to retrieve it, unsmiling.

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