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Ex-Goldman Sachs trader Fabrice Tourre liable in $1bn fraud | |
(35 minutes later) | |
A New York jury has found former Goldman Sachs trader Fabrice Tourre liable for fraud in a complex mortgage deal that cost investors $1bn (£661m). | |
Jurors concluded that the trader, who nicknamed himself "Fabulous Fab", had misled investors in the run up to the global financial crisis in 2008. | |
Complex mortgage investments played a significant role in the crisis. | |
Mr Tourre was found liable in six of the seven fraud claims brought by US financial regulators. | |
He was accused by the Securities and Exchange Commission (SEC) of misleading investors about investments linked to subprime mortgages that he knew would fail. | |
Because the case is civil rather than criminal, he faces possible fines and a ban from the financial services industry. | |
The exact punishment will be determined at a later hearing. | |
In his closing arguments, SEC lawyer Matthew Martens described Mr Tourre's testimony as "surreal, imaginary, unreal, dreamlike". | |
He was also described by the regulator as the "face of Wall Street greed". | |
Two years ago, the disclosure of emails from Mr Tourre sparked widespread debate about Wall Street's role in the financial crisis. | |
In them he described himself as Fabulous Fab, saying of the financial markets that the "whole building is about to collapse anytime now". | |
"Only potential survivor, the Fabulous Fab... standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!" |