The Case Against Goldman Sachs and Fabrice Tourre

In 2010, the US Securities and Exchange Commission (SEC) was founded in 1934 for the enforcement of federal securities laws and the regulation of the US securities industry, accusing Goldman-Sachs in charge of CDO structure and marketing . RMB performance. The US Securities and Exchange Commission violated the fraud prevention clause by manufacturing and selling these complicated goods, especially without revealing important information to investors, and the Goldman & Fabrice Tourre is a senior executive at Goldman Sachs I condemned it.

In 2013, the court ruled that Goldman Sachs mid - sized trader Fabrice Tour was convicted in the 2008 crisis, including an innocent CDO called abacus. The CDO used in the crisis of 2008 is a collection of similarly mature housing loans. CDO represents the debt of a mortgage (housing is a mortgage loan) (mortgage is an obligation to repay debt). "Over the past three decades, the majority of the American academic community has deteriorated for the" paid game "campaign. Now, if you see a famous professor of economics writing testimony or article in Congress, in most cases these professors do not reveal these conflicts of interest, in most cases their colleges are different It seems to be the way of.

This morning, the US Securities and Exchange Commission filed a securities fraud complaint against Goldman Sachs and a London based company vice president of Fabrica. In the complaint, they acknowledged in 2007 that the hedge fund John Paulson made a mortgage debt called Abacus on tour. Put the abacus on the market. The customer did not mention that Paulson created the CDO, especially for the purchase of credit / default insurance.