The U.S. Securities and Exchange Commission announced that they head to trial for the fraud case against the former Goldman Sachs bond trader, Fabrice Tourre. The case will highlight all of the aspects of what went wrong in Wall Street during the 2008 financial crisis. The jury selection will begin in the federal court of New York for the civil fraud case against Tourre.
Fabrice Tourre, a former Goldman Sachs bond trader, is on trial for what the SEC says that the bond trader misled investors in the mortgage securities investment that was called Abacus 2007-AC1. The trial is called the highest-profile trial to date as related to SEC's investigation for the events leading to the 2008 crisis. The SEC's case, tagged by U.S. District Judge Katherine Forrest, that Tourre "handed Little Red Riding Hood an invitation to grandmother's house while concealing the fact that it was written by the Big Bad Wolf."
According to the agency, the "wolf" pertained to is John Paulson, the hedge fund billionaire who bet against the subprime mortgage market. The events were chronicled in "The Greatest Trade Ever" by Gregory Zuckerman. In 2006, Paulson & Co Inc, asked the help of Goldman Sachs Group Inc to assist him in betting against subprime mortgages.
Join the Conversation