Honesty? What a concept.
A New York jury has found former Goldman Sachs trader Fabrice Tourre liable for fraud in a complex mortgage deal that cost investors $1 billion.
Jurors concluded that the trader, who nicknamed himself “Fabulous Fab”, had misled investors in the run up to the global financial crisis in 2008…
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 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…
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“…
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…”
According to its website, the commission has charged 157 firms and individuals so far, including 66 senior executives, and has secured $2.7 billion in fines and penalties.
Goldman Sachs settled its case with the SEC in 2010, paying $550 million without admitting or denying any wrongdoing.
Step by step, the longest march can be won. If our politicians think fines are sufficient, that’s just another reason to throw the bums out and vote in someone with backbone.