July 16, 2013
The trial of former Goldman Sachs bond trader Fabrice Tourre was about “Wall Street greed,” a lawyer for the US Securities and Exchange Commission said as the trial began yesterday.
The SEC accuses Mr Tourre of misleading investors in a mortgage investment called Abacus 2007-AC1 by not telling them that a hedge fund was involved in selecting the underlying assets and betting against it.
Matthew Martens, a lawyer for the SEC, told the jury the deal Mr Tourre put together was “secretly designed to maximize the potential it would fail” to the benefit of the hedge fund, which made about $1 billion.
This article was posted: Tuesday, July 16, 2013 at 12:48 pm