Wednesday, 30 July 2014
Last updated 28 min ago
Feb 1 2011 | 5:18am ET
The Goldman Sachs executive accused of defrauding investors in a collateralized debt obligation allegedly structured and marketed on behalf of Paulson & Co. will have to move ahead with depositions today, a judge ruled.
Fabrice Tourre, the only individual sued in the case, had sought a delay to give his lawyers more time to review more than 300,000. He also complained that he had not yet received documents from the one of the biggest alleged victims in the case, German bank IKB Deutsche Industriebank. Tourre had wanted the depositions delayed at least until the courts ruled on his bid to have the case against him dismissed.
But U.S. District Barbara Jones rejected that bid, however, clearing the way for the depositions to begin.
In addition to information from IKB, Tourre also wants to subpoena ACA Financial Guaranty, Magnetar Capital Partners and the Royal Bank of Scotland, his lawyers said in a court filing yesterday. According to the document, Tourre’s team has already reached a deal with some of those firms about turning over information.
ACA was the largest investor in the Paulson CDO and one of its units selected the residential mortgage-backed securities. Hedge fund Magnetar was, like Paulson, active in the CDO market.
“The subpoenas seek relevant, non-privileged information demonstrating the sophistication and experience of the very entities who the SEC alleges were misled, and the limited number of documents Mr. Tourre now seeks are thus critical to his defense.”
Tourre claims the case against him is forbidden by a recent U.S. Supreme Court decision. Goldman settled the allegations against it in July for $550 million.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…