The Fabulous Fab is Still Kicking

Addinator's picture
Rank: Neanderthal | 2,340

Here's a fun one. Remember Fabrice Toure, owner of the infamous emails from Goldman that the SEC is still battling of Abacus? Apparently, he is now at University of Chicago and is even a TA.

The SEC sued Goldman and Mr. Tourre, then a vice president, in April 2010, alleging they misled investors on a collateralized-debt obligation called Abacus 2007-AC1 that produced big losses for investors and big gains for hedge-fund firm Paulson & Co. A collateralized-debt obligation, or CDO, pools loans, such as subprime mortgages, with slices of the security sold to investors.

Mr. Tourre's emails formed a central part of the regulator's case and created a sensation on Wall Street. The messages disclosed both a sense of humor--in one email, he refers to himself as "the fabulous Fab"--and a keen awareness of the looming crisis.

I honestly hadn't even thought of this guy in forever till I read this article, and I'm not really sure how I feel about it. You'd think there would be some larger ramifications for him than just a civil suit against him. I'm amazed the stigma hasn't followed him further; maybe I'm underestimating the seriousness or relevance of all this?

Meanwhile, back in Chicago, Mr. Tourre is embracing an upscale version of the graduate student's life. Goldman placed Mr. Tourre on unpaid leave in late 2011, and he returned to school. He left the firm, which continues to pay his legal bills, this past December.

I'm not trying to say he shouldn't be pursuing his education and getting on with his life, but he seems to be a bit 'too' nonchalant about the whole situation. I guess it helps when you have Goldman footing all your legal bills, or maybe it is compensation for him being the fall guy?

Comments (10)

Apr 26, 2013

Although he was part of the "scheme", he was probably there just because they got his mails and not because he was the master behind the whole process. Someone above him at GS will probably be less nonchalant on the situation...

Apr 26, 2013

The guy is no doubt a bad ass that made the firm a lot of money. He's essentially the "fall guy". Someone had to be and it wasn't going to be someone at the analyst/associate level. I'm guessing Goldman didn't want to lose someone at the MD level.

They are paying his legal bills, and in return, he probably just needs to keep quiet and can't write a book.

Apr 26, 2013

Let's see...he's made plenty of money pre grad school, he probably got into every PhD program he applied to, his legal bills are being fronted by GS, the outcome of his legal issues probably won't result in him being barred from the securities industry - so he could return if he wanted. Worst case: he pursues a high level career in academia. Life could be much worse.

Apr 28, 2013

.

If your dreams don't scare you, then they are not big enough.

"There are two types of people in this world: People who say they pee in the shower, and dirty fucking liars."-Louis C.K.

Apr 26, 2013

Someone has to take the fall. Tourre was chosen. I am sure he has been well-compensated both on-the-job and for taking the fall.

C'est la vie monsieur Tourre!

Apr 26, 2013

I wish I was two years younger. Would have been very interesting to have him as a TA at UC...

I would agree with you, but then we'd both be wrong.

Apr 27, 2013

I don't think he should feel bad. His job was to make money.

Apr 28, 2013

So I've spent sometime studying the famous Fabulous Fab, and the following article has been my favourite so far:

'Was Fabrice Tourre Cheating On His Girlfriend?'
http://www.zerohedge.com/article/was-fabrice-tourr...

Anyone familar with the matter pls feel free to provide an update about his love life~

The Auto Show

Apr 28, 2013

I still don't understand what he did wrong

Apr 28, 2013
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