Was Fabrice Tourre Cheating On His Girlfriend? Are CDOs Really Nothing More Than "Intellectual Masturbation"?

Tyler Durden's picture

Zero Hedge is currently going through the 100 or so pages of just released Goldman emails that disclose in excruciating detail the events from late 2006 to late 2007 occurring in Goldman's mortgage trading business. We will have a lot more to say on this tomorrow, suffice to say that we were pleasantly surprised that C-BASS, which we uncovered recently may be implicated in the Goldman SEC fraud scandal, is again involved. We also feel bad for Harvard and MS Prop, and a little better for Hayman Capital. Stay tuned. In the meantime, we will take a brief detour into the financial yellow pages, as we focus on the curious case of Fabrice Tourre, who once again plays a prominent role in today's email discovery. The first thing that caught our attention is the original "Fab Fab" email, finally reproduced in its entirety. One tangent that may be relevant to gleaning some more insight into the character of the "fabulous" 27 year-old mortgage god, is that at the time he penned his email to girlfriend (#1), then Goldman co-worker, Marine Serres, he was likely also with girlfriend (#2) Fatiha Bouktouche, a Columbia University post Doc, to whom he may have been disclosing proprietary Goldman holdings and trades. Who knows to whom, when or how Fatiha may have leaked insider trades whispered to her by Fabrice, and who knows what CDO trades Marine was pitching to the retarded (and soon to be bankrupt) European banks gobbling up everything Goldman would sell them, structured and originated by her boyfriend.

We recreate the original email:

From:       Fabrice Tourre
Sent:       Tuesday, January 23, 2007 11:34 PM
To:          Marine Serres
Subject:   Fw: ft--friday

Darling you should take a look at this article... Very insightful...More and more leverage in the system, l'edifice entier riqsue de s'effondrer  a tout moment.... Seul survivant potentiel, the fabulous Fab (as Mitch would kindly call me, even though there is nothing fabulous abt me, just kindness, altruism and deep love for some gorgeous and super smart French girl in London), standing in the middle of all these complex, highly levered exotic trades he created without necessarily understanding all the implications of these monstruosities !!! Anyway, not feeling too guilty about this, the real purpose of my job is to make capital markets more efficient and ultimately provide the US consumer will more efficient ways to leverage and finance himself, so there is a humble, noble and ethical reason for my job ;) amazing how good I am in convincing myself !!!

Sweetheart, I am now going to try to get away from ABX and other ethical questions, and immediately plunge into Freakonomics... I feel blessed to be with you, to be able to learn and share special things with you, I love when you advise me on books I should be reading. I feel like we share a lot of things in common, a lot of values, topics we are interested in and intrigued by... I just love you !!!

Your chtit Fab

The first thing to note here is the biographical details on Ms. Serres. Curiously, a generic google search reveals that her LinkedIn profile has been deleted promptly and very recently. Too bad once something hits the Interwebs it never disappears. Which is why we recreate the cached version of the page which Ms. Serres decided to take down in a hurry.

It may be interesting to get some insight into just who Ms. Serres was selling "Structured Products" and just what "over the Wall" information she may have been privy too. We know that there is something in Ms. Serres bio that prompted her to
take down her LinkedIn page immediately. We would like to find out what
it is. It would not be far fetched to imagine that Ms. Serres was instrumental in selling CDOs and other structured products to Goldman's European clients. Surely, this such a blatant and very much illegal practice demands at least another Congressional investigation. Congress - get right on it. As a reminder, Gail Kreitman, whose testimony was critical in the SEC case against Goldman, and who mysteriously departed Goldman in June 2009 was also a structured products salesman at Goldman (Gail's husband was a founder of subprime "specialist" C-BASS, which lilquidited and subsequently was acquired by Goldman Sachs for pennies on the dollar). According to the FSA database, Marine Charlotte Alexandra Serres left Goldman on October 31, 2007.

To be sure Marine felt the same way the Fab said he felt about her:

From:        Serres, Marine
Sent:        Wednesday, March 07, 2007 6:43 AM
To:           Tourre, Fabrice
Subject:    RE: Diner

And right now, I'd love nothing more than just curl in your arms, feel the warmth of your skin and just stay there smiling for hours (with occasional - frequent - tender kisses... ;)

Reveille toi doucement mon amour...

Ta chtite puce

What is interesting in the email discovery is that there was another woman in the life of "kind and altruistic" Fab Fab: then Columbia University Post Doc Fatiha Bouhktouche.

In an email Fabrice sent out on January 29, less than a week after the critical January 23 email sent to Marine (see above), he writes:

Yep, work is still as laborious, it's bizarre I have the sensation of coming each day to work and re-living the same agony - a little like a bad dream that repeats itself... In sum, I'm trading a product which a month ago was worth $ 100 and which today is only worth $ 93 and which on average is losing 25 Cents a day...That doesn't seem like a lot but when you take into account that we buy and sell these things that have nominal amounts that are worth billions, well it adds up to a lot of money.

When I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invent telling yourself: "Well, what if we created a "thing", which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?") it sickens the heart to see it shot down in mid-flight... it's a little like Frankenstein turning against his own inventor ;) Anyway I don't want to bore you with my stories, I'm going to look in the yellow pages for the phone number of the ABX market and I'll send it to you, because I believe that a soft and sensual feminine intervention is necessary for Fab's survival


Fab (In string, which is rather free)

To which Fatiha, presumably unaware of Marine's existence in far away London replies:

j'aurais bien aime t'aider...mais j'ai cherche les coordonnees sur les yellowpages et j'ai pas trouve...A defaut des marches, je pourrai aussi essayer d'intervenir aupres de toi de facon douce et sensuelle... ;') Just ler me know si ca peut t'aider!!! bizzzzzzzzzoux

Even non-French speaking readers can figure out the gist. We are far from making moral judgments on Fab's love life, who a mere 6 days earlier pledges himself as full of "kindness, altruism and love" for another woman, although has no problems to carry on a parallel existence filled with "bizzzzzous" and more than one "intervention feminine douce et sensuelle." However, the question of just how much confidential information about Goldman's prop trading positions the seemingly endlessly boastful Fab was disclosing to his at least 2 girlfriends deserves additional probing. And while we are certain that a certain Columbia post-doc did not have access to trading ABX, IG, CDO2 or any other "intellectual masturbation" product which only Goldman can specialize in, who knows who else may have benefited from Fatiha's information conduit.

We are confident that the hearing on Tuesday will cover none of these moderately relevant issues, and instead will be based on soundbites from Congressional staffers who are pounding the populist drum without having a grasp of the big picture, in hopes of taking advantage of the Goldman scapegoating campaign to boost declining ratings.

We will have more to say about the full email discovery tomorrow, as there are some other much more relevant disclosures, some very critical about just how Goldman takes advantage of its market monopolistic position to push the market in any way it wants.

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masterus's picture

French passion leads to masturbation in every field.

Pamela Anderson's picture

Erin Burnett, Don't you get it??? Only someone as STUPID as you are can drink the Kool Aid that all the crooks and liars that you interview give you to drink!.... wait... wait... it's not their fault if they find someone as shalow and naive as you are... every day you are just played like a cheap whore! Two years ago you were saying that the high oil price was a result of world demand! FUC%#NG IDIOT!!!! It was at $140!!!! Don't you get how Wall Street works???



aint no fortunate son's picture

The day my mute went on permanent for all things CNBC was the day that nitwit Burnett looked into the camera as she defended China for another egregious act of human rights deprivation or some such thing, and uttered a phrase that will burn in my memory forever, as she choked back the tears with her heartfelt "But the Chinese are our friends..." excuse for their behavior... Jon Steward had a field day with that scene that night.

She's just another former Goldman bimbo sent out from the pod to infect the earth... in her own way as despicable as Crammer. 

anynonmous's picture

Video - Erin burnett met joe kernen in a hot tub - TV



and Erin on Erin


"Eight Things That Would Impress Me" 



Careless Whisper's picture

fab fab needs an agent, not a lawyer.

sgt_doom's picture

I greatly appreciate your comments, Mr. or Ms. Anderson, but really, why does ANYONE bother with the American propaganda networks (we most definitely do not have any MEDIA in America --- that's NO media....PERIOD@@!!).

I gave up on ALL of the propaganda networks sometime ago (actually, 2001, but I should have quite at 1999).  I read government documents and the foreign press, aside from superior web stuff such as zerohedge, etc.  I CAN usually verify what I read in the foreign press, or on the Web, from government documents.....I can almost never verify ANYTHING I read or hear in the American propaganda networks (including Newsweek, Time, The Economist, etc., etc., ad nauseum...).

Of course they don't hire, or those they hire refuse to report, in anything other than Wonderland, that universe which ignores the existence of history, economics, arithmetic...ya know...the BIG stuff....

chealy3's picture

what are you wiling to sacrefiece to make it change?

milbank's picture

Yes CDOs are more than "Intellectual Masturbation" and yes, he was cheating on his girlfriend.  I know for a fact he was screwing his customers and eventually the U.S. taxpayers.

dark pools of soros's picture

what dork board girl would pay attention to any of that finance geek crap?

Johnny Bravo's picture

One that likes guys with money?

Look at Nouriel Roubini.  He's got all kinds of cougar followers, even though he's kinda lame, and not attractive, etc.

anonnn's picture

Q1. Who does she work for?

Q2. Who does she really work for?

MsCreant's picture

Wow, covered a lot in one post.

Pride _x_

Envy _?_

Gluttony _?_

Lust _x_

Anger _x_ ask either woman

Greed _x_

Sloth _x_

Ras Bongo's picture

Would pay to see the women's faces right now. LOL!

dark pools of soros's picture

nah - rather pay to see their boobs

Johnny Bravo's picture

While I like the way you think...

NEVER pay to see a woman's boobs.  You can always see some for free with a little bit of applying yourself.

Shit, some drunk whore at the bar will flash you after she kisses some other drunk whore if you're unsuccessful at talking girls into it otherwise.


Janice's picture

I know a guy like you.  Now, he's 47 years old, having been divorced 3 times, living alone in a mobile home.  The only one that talks to him is his mother.  When you seek to degrade someone else, a little filth rubs off on you.

Canucklehead's picture

Were you one of the three or is he your brother?  Just askin...

Janice's picture

N/A.  When you get older, you look back over you life & realize that there was "that one", just one, that got away, but should have been kept.  For the 47 year old guy, I was "that one", just that one little fish that got away.  Slipped through his hands like water.  Carry on, move along, nothing to see here.

Miles Kendig's picture

Janice - You remind me of MN Nice, but with more attitude.  Well said.  For who among us is without blemish?  As a 47 y/o disabled army ranger who has been twice divorced your comment strikes me as exquisite.  peace

For the box/cube dwellers - Layne


Janice's picture

Thank you for your service & sacrifice.  I was in service for 9 years.  Love ALL Alice in Chains - Facelift & Jar of Flies.

Miles Kendig's picture

You arrived after I did a name change from Layne to Miles..  Kept the pic tho ..  I'll be looking for your perspectives and I suspect that they will continue to rock.  After all, fight club is really a love hate love kinda deal.  peace

- Layne


Miles Kendig's picture

Fab Fab must love the look of red sharpie colored toenails now.... Heck, this might even generate sympathy with some of his senate questioners.

The real deal here is, of course, the money.  And as is the norm we discover matters of the heart along the money trail.

williambanzai7's picture

Scum sucking pencil necked geeks...
Captain Lou Albano

J. Pierpont Finch's picture

The line is "Pencil-neck geek, grit-eating freak, scum-sucking peehead with 
a lousy physique! A one-man, no-good losing streak - nothing but a pencil-neck
 geek!" And it was the wrestler Classie Freddie Blassie who sang it.

Glenjo's picture

Indeed!  That nasty intellectual masturbation always made the pages of my textbooks stick together after I was done studying.

whatsinaname's picture

Or ur hair stick up aka Jim Carrie..haha

ZeroPower's picture

The panel in the senate that gets to ask Fabrice questions is going to have a fucking FIELD DAY with those emails, and will most probably end up ignoring the main issue at stake with their whole 5 minutes of question time

Illya Kuryakin's picture

WTF is this Fabrice guy doing out there a free man anyway? Where is fucking Eric Holder? 

Kataphraktos's picture

Recharging in his regeneration alcove.

svendthrift's picture

Holder is also busy continuing the cover up of the FBI's murder of Kenneth Michael Trentadue:



tony bonn's picture

eric holder couldn't find a naked ass in a whore house....he's got his dick so far up obama's corrupt kenyan ass he probably doesn't even know what cdo stands for and doesn't have the remotest interest.

ZeroPower's picture

double post fail

Mitchman's picture



This is the best G-D financial page on the Internet.  Bar none!

Cursive's picture

He really should get a pulitzer or something for this.  But then, that's not in the fight club rules.  Trophies are for little bitches.

MsCreant's picture

If they are just dying to know his real identity, a Pulitzer should bring him out of the woodwork.

Miles Kendig's picture

That's his & hers since Tyler posts are gender unspecific.  But ya, the real awards for ZH are page reads, donations, seeing ZH material creep into the decision cycle of the Ponzi and those who populate it.  Please do what you can to support this process.  peace

percolator's picture

fab fab is going to be someones bitch in prison.

Miles Kendig's picture

Just like Keating with the Irish mob at FCI Phoenix, Fab will be paying millions in protection.  A real cash cow Fab Fab will be in prison.  A net positive per capita for everyone involved, except for Fab Fab and those that will have to tote his water.

chindit13's picture

The Best of the Best.  The Smartest Guys in the Room.  The epitome of financial acumen.  God's work.  The legendary and highly respected Goldman Sachs.

Funny how a hundred fifty years of image can be shattered and (hopefully)irrevocably destroyed in a mere few lines of email.

THAT is how to fight the good fight, Tyler Durden.  Lift up the firm's collective towel and show its little weenie to the entire world, especially to the taxpayers whose children will pay for what Goldman hath wrought and bought.

In this war you may win a Medal of Honor.  Just be careful not to earn a Purple Heart. We have a wounded animal being backed into a corner.

As an aside, it it interesting that Fabrice seems to have a conscience of sorts, though not necessarily in his relationships with women.  His concern and seeming guilt over the already-rotting toxic waste he knows he and his firm are creating and distributing is something I thought Goldman tried to excise in its sublimation process.

I would guess that after this piece gets air time, Sunday will be a work day across much of Wall Street as employees purge their own email records.  If Serge was a free man, the hacking he could do could fill volumes.

Hulk's picture

They can purge all they want, firms have network appliances in place that record and store all email , several years worth in fact!

Although I am sure goldman just deep sixed theirs!

Miles Kendig's picture

So does the NSA & DIA, but that is also a separate matter.  BTW Chindit13, excellent commentary!  Thanks for stepping up.

PeterSchump's picture

It is painfully clear that they are only the smartest guys in the room because they are the teachers pets, and the teacher (Gubmint) has rigged the curriculum in their favor.