Daily Outrage: EC charges Goldman Sachs tricked investors 

WHO: Fabrice “Fab” Tourre

WHAT: The Securities and Exchange Commission has charged Goldman Sachs & Co. and one of its vice presidents with defrauding investors by failing to disclose that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold while the housing market was collapsing. Two European banks that bought the mortgage derivatives lost nearly $1 billion.

SMOKING GUN: Fabrice Tourre, the Goldman VP named in Friday’s charges, was quoted in this subpoenaed 2007 e-mail:  “The whole building is about to collapse anytime now … Only potential survivor, the fabulous Fab [Tourre] … standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!”

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Staff Report

Staff Report

A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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