Fabulous Fab - the verdict is in


And it's a bit of a surprise.

Bloomberg News reports that Fabrice Tourre, the former Goldman Sachs vice president on trial for his role in a failed $1bn investment, was found liable on six of seven claims by a jury in Manhattan.

The verdict is a victory for the government in one of the most high-profile trials to come out of the financial crisis of 2007-2008. The Securities and Exchange Commission accused Tourre, 34, of intentionally misleading participants in a 2007 deal known as Abacus about the role played by Paulson & Co., the hedge fund of billionaire John Paulson.

The jury’s finding of wrongdoing may help Goldman Sachs customers in lawsuits against the bank over losses tied to the transaction. Tourre faces unspecified money penalties and a possible ban from the securities industry.

'We are obviously gratified by the jury’s verdict and appreciate their hard work', Matthew Martens, the lead SEC lawyer, said.

The SEC claimed Tourre hid the fact that Paulson helped choose the portfolio of subprime mortgage-backed securities underlying Abacus, then made a billion-dollar bet it would fail.

Hit the link below to access the complete Bloomberg article:

Tourre Found Liable in Case Claiming $1 Billion CDO Fraud

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