Top Story: Why the SEC should not be applauding its latest Wall Street conviction.
- You would assume that any time a Goldman Sachs VP is found liable for fraud, an angel gets its wings. (The Wall Street Journal)
- Particularly if his nickname is “Fabulous Fab”. (Business Insider)
- Fabrice Tourre was convicted on 6 out of 7 claims of violating federal securities laws and now faces “potential fines and a possible ban from the financial industry.” (Associated Press)
- In part, perhaps, because he tried to define a line between the terms “false” and “not accurate”. (Reuters)
- And then there were those sarcastic emails about creating “monstrosities” and selling them to “widows and orphans.” (Sam Gustin) and (BBC)
- And yet there is something hollow about the victory — perhaps because Tourre is now the SEC’s only successful conviction of an employee from a big American bank since the financial collapse. (DealBook)
- “I was always pretty sure Fabrice Tourre was behind the entire global financial meltdown. And now we finally know. The mystery is solved.” (Ben White)
- After all, Toure may be a VP of Goldman Sachs but it seems everyone’s a VP of something in world of finance. And, frankly, “he is the lowest-ranking face on the totem pole of Goldman's former mortgage team.” (Heidi Moore)
- “In the list of bad guys from the run-up to the financial crisis, I have a hard time putting Tourre in the top 100 villains.” (Neil Irwin)
- And then there’s Goldman Sachs. Toure may have delivered the pizza but Goldman Sachs helped bake it. For their crime, Goldman paid a hefty $550 million fine. However, it admitted no wrongdoing. (SEC)
- That’s one of the largest civil penalties ever for a Wall Street firm. Of course, in the most recent quarter, profits doubled to $1.9 billion. So, they should be fine. (Goldman Sachs)
- “The two banks that bought the Abacus deal both received multiple bailouts from the taxpayers of Germany and Britain.” (The Washington Post)
- Frankly, the conviction feels a lot like the plot of “Paths of Glory”, where generals successfully pass blame — and the firing squad — for a poorly planned military attack onto much lower-ranking soldiers. (Wikipedia)
- Mind you, this verdict may come as a surprise to Tourre, who’s lawyers decided to call no witnesses. Yeah: whoops. (John Carney)
- And on a final, side note, the verdict also would appear to be yet another lesson for the “Breaking News!” industry: Always be sure to jump on the news and not a hand grenade. (TV Newser)