Courtesy of Pam Martens.
Fabrice Tourre Testifies Before the Senate Permanent Subcommittee on Investigations, April 27, 2010
There are two parties to the alleged crime of Fabrice Tourre who are not facing a jury trial this week in the Southern District of New York: Goldman Sachs and John Paulson.
The alleged crime involves a deal called ABACUS which was designed to fail with the knowledge of Goldman and Paulson and Tourre — but sold to investors as a worthy investment.
Goldman Sachs earlier this morning reported second quarter profits of $1.93 billion. It paid the government a fine of $550 million for the ABACUS deal back in July 2010, without admitting or denying guilt, and went on about its business of minting money.
Paulson was never charged officially by the government but he was named in the Securities and Exchange Commission’s outline of the crime. Thanks to New York University, where he serves as a Trustee, Paulson is actually being held up as an exemplary figure of finance. According to NYU’s Stern School of Business alumni magazine of Spring/Summer 2010, “the School has named the first floor lobby of Tisch Hall and the School’s auditorium in his honor. These spaces are prominent locations for hosting business and policy conferences as well as serve as central community hubs for students and returning alumni.”
The trial is all over the media today with Paulson’s name prominently mentioned. One can only wonder what message this is sending to the impressionable young minds at NYU.
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