Goldman Sachs is a New York-based investment banking firm that engages in global investment banking, securities, investment management, and other financial services, primarily with institutional clients. Founded in 1869, the firm is recognised as one of the most prestigious institutions in the world, although its reputation has suffered after the financial sector drew fire since the global financial crisis.
’Fabulous Fab’ email admissible at former Goldman exec’s trial
Reuters in New York
The email that gave former Goldman Sachs vice president Fabrice Tourre his “fabulous Fab” nickname can be introduced at his upcoming securities fraud trial, a federal judge tentatively ruled on Wednesday.
US District Judge Katherine Forrest in Manhattan overruled an objection from Tourre’s lawyers that the email, which was a personal note sent to his girlfriend, was irrelevant to the case. In a written order, Forrest said the ruling was preliminary and could still change in the future.
The US Securities and Exchange Commission has charged Tourre with misleading investors about a 2007 mortgage securities investment called Abacus 2007-AC1 that regulators said was designed to fail. The agency contends Tourre failed to disclose that the hedge fund run by billionaire John Paulson helped select the mortgages underlying the Abacus investment and then bet on it to fail.
Goldman paid US$550 million (HK$4.3 billion) to settle the allegations but did not admit or deny any wrongdoing. Tourre, who denies any wrongdoing, is scheduled to go on trial on Monday.
Tourre sent the email on January 23, 2007, to his girlfriend at the time, Marine Serres, a Goldman Sachs co-worker stationed in London.
“The whole building is about to collapse anytime now,” he wrote in French, referring to financial markets. “Only potential survivor, the fabulous Fab ... Standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!”
Media outlets quickly pounced on the nickname after the email became public.
Tourre’s lawyers argued on Tuesday that Serres played no role in the creation of Abacus 2007-AC1. The SEC countered that the email demonstrated Tourre’s state of mind regarding the investment.