Tuesday, 2 September 2014
Last updated 2 hours ago
Jul 10 2013 | 1:36pm ET
Fabrice Tourre, the former Goldman Sachs executive accused of misleading investors in a Paulson & Co.-linked collateralized debt obligation, gave himself the nickname, "the fabulous Fab," but he appears to have no pride in the authorship.
Tourre's lawyers have asked that a number of e-mails, including the "fabulous Fab" missive, be excluded from his upcoming civil trial. The Securities and Exchange Commission alleges that Tourre misled investors about Paulson's role in creating the CDO in question, ABACUS-AC1.
Paulson, which has not been accused of any wrongdoing, allegedly had a hand in picking the securities that went into the $1 billion CDO, which it made a killing shorting. Goldman settled the allegations against it for $1 billion.
In one e-mail, Tourre writes that he is "not feeling too guilty about this" and that it is "amazing how good I am in convincing myself." In the "fabulous Fab" e-mail, he wrote, in French, that "the whole building is about to collapse anytime now," and said he was "the only potential survivor."
Tourre's lawyer argued at a hearing yesterday that "these e-mails have nothing to do with the case we're about to try." Prosecutor Matthew Martens disagreed, telling the judge, "There is no other way to tell his state of mind."
U.S. District Judge Katharine Forrest handed a limited victory to Tourre yesterday, ruling that his lawyers will be permitted to question Laura Schwartz, who was Tourre's "primary contact" at ACA Financial Guaranty, which both insured and invested in the CDO. Schwartz was the target of an SEC probe into another CDO, but the regulator last month decided not to file charges. Tourre's lawyers will be allowed to question her on a limited basis about that decision.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...