Comments on: The silly trial of Fabrice Tourre http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: nixonfan http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47724 Sun, 28 Jul 2013 16:44:50 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47724 If I understand the SEC’s theory, Goldman had a duty to disclose to buyers of the CDO that another client planned to short it. My understanding is that, should GS have done so, it would have been a breach of client confidentiality. By analogy, when I go online to Fidelity to buy a share of Google, does Fidelity has a duty to tell me who is selling the share, and what his long/short position is?

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By: udonomi http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47695 Mon, 22 Jul 2013 09:42:11 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47695 [quote]8:46 PM UTC
“The rather dispiriting truth of the matter is that the SEC has spent four years and millions of dollars trying to [avoid] find[ing] anyone to prosecute in the wake of the financial crisis”
There, fixed it for you.
Posted by Moopheus[/quote]

where is the like button for this comment?

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By: Mike_SD_CA http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47673 Fri, 19 Jul 2013 13:27:35 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47673 The SEC would not be “better off quietly settling”. It’s well established that “the people who really made out like bandits” are untouchable. That doesn’t reduce the value of going after a “minor spear-carrier” and punishing him severely. Yes it’s risky. But if the SEC can win, “minor spear-carriers” everywhere might think about obeying the law once in a while. Sure, the power of a company like Goldman Sachs is so immense that people at some level can get away with anything. But if this case can be won, and it can sow doubt within the mind of each and every non-executive worker on Wall Street as to whether or not they are at “that level”, it’s a win for the rule of law.

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By: shammgod http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47669 Thu, 18 Jul 2013 00:33:50 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47669 I’m no bigger fan of agency misguidance than anyone else on here, but I think you’re missing some critical facts about this case, Felix:

Tourre was a co-defendant to the SEC’s original complaint against Goldman. As expected, Goldman settled. Unexpectedly, Tourre did not. Instead, he very vocally declared that he was not going to settle so that he could, as they say, see his day in court. Whichever side you’re on, it’s not an entirely unreasonable stance to take.

However, the notion that the SEC would be better off “quietly settling” places the blame in the wrong place. I’d bet that the SEC would LOVE to settle this case, avoiding this circus altogether. Talk to any investor advocate and you’d find that the biggest issue with the SEC is not that they don’t settle enough, but that they settle too much (usually without any admission of guilt).

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By: rambos http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47668 Thu, 18 Jul 2013 00:32:36 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47668 yes they aren’t as sophisticated as you are to go after Blankfein. The trial is neither silly nor should he be allowed to hide at a university.

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By: Moopheus http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47666 Wed, 17 Jul 2013 20:46:15 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47666 “The rather dispiriting truth of the matter is that the SEC has spent four years and millions of dollars trying to [avoid] find[ing] anyone to prosecute in the wake of the financial crisis”

There, fixed it for you.

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By: Foppe http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47665 Wed, 17 Jul 2013 20:35:21 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47665 1. The SEC might be hoping Fab will break, and tell on his superiors.
2. contrary to what you suggest, there is a fairly good case to be made that the business model on which the entire CDO market is based is problematic; but for that to happen we would need an expert capable of explaining why the whole business of slicing and dicing and re-rating tranches was one elaborate system of accounting fraud. This is never going to happen, of course, because too many reputations rest on the public never coming to realize how corrupt its elites are.

Having said that, I have no problem at all with their “persecuting” (just come out and say it rather than allude to it, please) Tourré. The only problem is that this is a show trial because the SEC doesn’t want to bring down the system, if only because it would lead to the airing of facts about its institutional behavior that would strongly disfavor the SEC. Etc.
I just keep hoping the stupid bureaucrats make a mistake that winds its way through the system long enough for them to lose the ability to put a lid on it…

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By: realist50 http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47664 Wed, 17 Jul 2013 19:36:50 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47664 I think that Felix is saying that he’d make his decision based on his assessment of the morality of Goldman Sachs’ role in the transaction as opposed to his assessment of the legality of Tourre’s role. If I’m understanding that correctly, then I’m glad that he’s not on the jury. Though, to be fair, the decision will ultimately be made by a jury that more than likely has no idea what the hell is going on, while Felix would at least understand the case.

Also, I don’t believe that “guilty” or “not guilty” is the appropriate terminology here because it’s a civil case – it’s “SEC wins” or “Tourre wins”.

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By: Sandrew http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47663 Wed, 17 Jul 2013 17:44:26 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47663 Why are Tourre and Stoker considered too junior to bear responsibility? I wonder if their paychecks c. 2006 reflected their having played merely bit parts in a drama set In a board room far removed from the trading floor. The traders and salesmen whined that they should eat what they kill, lest they take their talents elsewhere. They won. And they ate plenty. And if along the way they illegally deceived some unsympathetic counterparties, and got caught, what’s the appropriate response? Should we throw up out hands and declare that it’s not really Fab’s fault, even if he lied. Not really truly. No more so than a thousand other guys who got rich playing with other people’s money. He was just a low-level guy who happened to leave an eye-catching paper trail. It’s not like he was getting paid to take risks.

Dear Fabrice: I’m sorry your negligent bosses gave you so much responsibility, so young. I wish they never had. I’m sorry you were the only one to get caught. I wish more of you were. I’m sorry you’ve been made into a scapegoat for the entire financial crisis. I wish that on Dick Fuld instead. But thems the breaks. Man up, take your ban, and good luck on the PhD market.

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By: Twinkbait http://blogs.reuters.com/felix-salmon/2013/07/17/the-silly-trial-of-fabrice-tourre/comment-page-1/#comment-47662 Wed, 17 Jul 2013 17:03:14 +0000 https://blogs.reuters.com/felix-salmon/?p=22263#comment-47662 Another clear demonstration that we’re all in the best of hands with this administration.

Also demonstrates they’re doing a smack up job at keeping their priorities in line!

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