Few Settlement Talks For Goldman Exec. In CDO Case

Aug 9 2010 | 1:29pm ET

His employers could hardly have been more eager to settle the fraud case against them, but Fabrice Tourre, the only individual named in the Securities and Exchange Commission lawsuit against Goldman Sachs, appears ready to fight the charges in court.

A lawyer for the Securities and Exchange Commission said that the two sides have had only “preliminary” discussions about a settlement. Tourre is charged with misleading investors in a collateralized debt obligation allegedly structured and marketed on behalf of hedge fund Paulson & Co.  Goldman settled similar charges last month for $550 million without admitting any wrongdoing but acknowledging “mistakes” in the CDO’s marketing material.

Tourre, a vice president at Goldman, is currently on leave from the firm. He was the pointman on the controversial CDO, and counted Paulson among his clients.

“I would characterize us as having very preliminary discussions a while back and that’s all,” Lorin Reisner, the SEC lawyer, said today.

The SEC said it was ready to turn over nearly one million documents in the case to Tourre’s lawyers, who said they would need nine months to review them. The SEC plans to depose 25 people in the case; Tourre’s side as many as 50.

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