Someone is going to face the music after all. It seems the SEC has its mid-level (non-executive) crisis scapegoat:
- *TOURRE LOSES SEC CASE CLAIMING FRAUD IN $1 BILLION CDO
Tourre has been found guilty on 6 of the 7 cases - we await news on the financial penalties. Perhaps more critically, this finding (in favor of the SEC) may open the door for more lawsuits against Goldman with regard similar transactions.
SEC Statement:
“We are gratified by the jury’s verdict finding Mr. Tourre liable for fraud. We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street. As shown by this verdict, we proved that Mr. Tourre, as a Goldman Sachs Vice President, put together a complicated financial product that was secretly designed to maximize the likelihood that it would fail, and marketed and sold it to investors without appropriate disclosure.”
And some of the fun in the court hearing:
Asked repeatedly if the information in the email was "false," Tourre responded, "It was not accurate."
"Only if you close your eyes to the facts, you can find Mr. Tourre not liable for his actions," the SEC lawyer said.
Tourre said, "I didn't create any monstrosities."