Sunday, 21 September 2014
Last updated 1 day ago
Jul 30 2013 | 12:53pm ET
In a sign of their confidence that the Securities and Exchange Commission had failed to prove its case against their client, Fabrice Tourre's lawyers will mount no formal defense at his trial for allegedly misleading investors in a controversial collateralized debt obligation.
Tourre's defense team rested yesterday without calling a single witness. Instead, they'll hope that Tourre's own words—the former Goldman Sachs executive testified for three days after being called as a witness by the SEC—will be enough to convince a jury to reject the civil allegations against him.
The decision not to mount a defense means that Paulson & Co. founder John Paulson will not testify in the trial. Tourre's lawyers had planned to call Paulson to testify about the CDO, ABACUS-2007-AC1, which the SEC alleges was structured and marketed on Paulson's behalf. Tourre is accused of misleading investors about Paulson's role in selecting the securities that went in to the CDO and about the hedge fund's plans to short the vehicle, which it did, turning a huge profit.
The case will go to the jury tomorrow, after closing statements today.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.