Fabrice Tourre, Face of Mortgage Securities Fraud

Wednesday, June 01, 2011

Louise Story, Wall Street and finance reporter for The New York Times investigates the lawsuit against Fabrice Tourre, a young Goldman Sachs employee who is the sole person being sued by the S.E.C. for his role in selling bad mortgage deals. Louise Story and Gretchen Morgenson write, "How Mr. Tourre alone came to be the face of mortgage-securities fraud has raised questions among former prosecutors and Congressional officials about how aggressive and thorough the government’s investigations have been into Wall Street’s role in the mortgage crisis."

The case focuses primarily on Abacus, a mortgage security that he knew had a high rate of default. Tourre sold this security while he was fully aware of it's faulty premise. He wrote colorful emails that reveal the extent to which he knew it was not a solid investment.

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