Fabrice Tourre denies withholding information
A denied "categorically". Fabrice Tourre, a trader at the heart of the case heard Goldman Sachs on Tuesday by U.S. lawmakers, denies all charges against him and issued against the bank by the SEC, the U.S. financial policeman. In his written testimony, he denied the charge of the market authority that it did not inform investors of the nature of complex financial product he had created, the Abacus AC-07 1. He also denied the fact of not having told investors that Goldman Sachs had authorized the manager hedge fund Paulson & Co in selecting portfolio securities included in the Abacus betting on depreciation.The SEC alleges including Paulson & Co have put in the pocket more than one billion dollars in capital gains through the operation, almost the total amount of losses incurred by investors who bid on Abacus.
Fabrice Tourre himself "surprised" and said he never told the ACA, the media company that acted as an agent of selection underlying portfolio of 07 Abacus AC-1, that Paulson & Co take share or buying a long position in the Abacus. "I do not remember the exact words I used at that time," admits Fabrice Tourre but he claims to have suggested to the ACA, Paulson could be involved in the transaction without being an investor. "If the ACA was not insured on this point, she had every opportunity to clarify the subject."
"We lost money too"
Fabrice Tourre said he never intended to mislead "two of its two major customers, the ACA and the German bank IKB No checking account payday advance. "When Goldman Sachs told investors that ACA had selected the titles referenced in Abacus, this statement was absolutely correct," said Fabrice Tourre.
Contrary to qu'assurent members of the Subcommittee investigation ongoing U.S. Senate, the transaction Abacus, "was not designed to fail". He said Goldman Sachs had no economic interest in seeing it fail. "We lost money too," says he, advancing "an amount exceeding 100 million dollars."
A polluted river
In his testimony, Fabrice Tourre appreciates being able to defend itself against these "false accusations". "These past weeks have been difficult for me and my family. I have been the subject of unfounded attacks on my motives, "he says.
Things get tough for him, as for the other leaders agreed Tuesday. In opening the hearing, Sen. Carl Levin, chairman of the subcommittee, did not mince his words regarding the Goldman Sachs "who took advantage of the collapse. "As the polluters who put the poison into a river, they have integrated the risky products in our financial system and polluted," he acknowledges. He does not forget to pass the role of credit ratings agencies "who with their triple A have to believe that the water was drinkable.
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