'Fabulous' E-Mail Sticks In Paulson CDO Case

Jul 12 2013 | 3:07am ET

Much to his chagrin, the jury that will decide former Goldman Sachs executive Fabrice Tourre's fate will learn just how fabulous he thought he was.

U.S. District Judge Katherine Forrest on Wednesday issued a preliminary decision that would allow prosecutors to use several colorful e-mails by Tourre at his upcoming civil trial. Tourre is accused of misleading investors about the role played by Paulson & Co. in a collateralized debt obligation structured by Goldman in 2007.

In one of the e-mails, Tourre gives himself a nickname that he now surely regrets, writing, "the whole building is about to collapse anytime now" and the "fabulous Fab" was "the only potential survivor." In another e-mail, Tourre wrote that he was "not feeling too guilty about this" and that it is "amazing how good I am at convincing myself."

The Securities and Exchange Commission, which brought the lawsuit against Tourre, alleges that 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 has already settled with the SEC, agreeing to pay $550 million.

Prosecutors had argued that the candid e-mails were the only way to show Tourre's "state of mind," while Tourre's lawyers argued they were irrelevant. The trial is set to begin on Monday.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.