This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23543441
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Ex-Goldman Sachs trader Fabrice Tourre liable in $1bn fraud | 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). | 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. | 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. | 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. | 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. | 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. | Because the case is civil rather than criminal, he faces possible fines and a ban from the financial services industry. |
| 'Surreal and dream-like' | |
| The exact punishment will be determined at a later hearing. | 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, dream-like". | |
| He was also described by the regulator as the "face of Wall Street greed". | 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. | 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". | 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!!!" | "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!!!" |
| Subprime mortgages became increasingly popular in the US in the years before the financial crisis. | |
| They were mortgages given to borrowers at higher risk of being unable to pay the money back. | |
| These high-risk loans were repackaged by banks into more complex mortgage investments and sold on to other banks, causing chaos in the banking system when borrowers began to default. | |
| Responding to the verdict, Andrew Ceresney, co-director of the SEC's enforcement division, said: "We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street." | |
| The SEC has faced criticism over its efforts to hold banks and their employees accountable for the financial crisis, which pushed the US and other global economies into recession. | |
| According to its website, the commission has charged 157 firms and individuals so far, including 66 senior executives, and has secured $2.7bn in fines and penalties. | |
| Goldman Sachs settled its case with the SEC in 2010, paying $550m without admitting or denying any wrongdoing. |