Posts Tagged ‘Fabrice Tourre’

The Fab Fab Self Eval For Dummies

The Fab Fab Self Eval For Dummies 

Courtesy of Zero Hedge

 


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Fabrice Tourre: I Am Not A Liar, And These Past Several Days Have Been Horrible For My Family

Fabrice Tourre: I Am Not A Liar, And These Past Several Days Have Been Horrible For My Family

Courtesy of Joe Weisenthal at Clusterstock 

Fabrice TourreWe know what Lloyd Blankfein is going to say in front of the Senate today, and now POLITICO has a small taste of what Fabrice Tourre will say — his first words since fraud charges against him and Goldman Sachs (GS). 

Here are the key quotes:

"I deny – categorically – the SEC’s allegation. … The transaction was not designed to fail. … I did not mislead IKB or ACA [investors in the deal: IKB Deutsche Industriebank AG, a German bank, and ACA Management LLC, a U.S. bond insurance company], two of the most sophisticated institutional investors in these products. … The last week has been challenging for me and my family, unfounded attacks on my character and motives.”

***UPDATE*** Here’s the full testimony courtesy of WSJ:

Chairman Levin, Dr. Coburn and Members of the Subcommittee. My name is Fabrice Tourre, and I work at Goldman Sachs International in London. Thank you for the opportunity to appear before the Subcommittee. I have worked at Goldman Sachs since 2001. Between 2004 and 2007, my job was primarily to make markets for clients. I made markets by connecting clients who wished to take a long exposure to an asset — meaning they anticipated the value of the asset would rise — with clients who wished to take a short exposure to an asset — meaning they anticipated the value of the asset would fall. I was an intermediary between highly sophisticated professional investors — all of which were institutions. None of my clients were individual, retail investors.

The structured products on which I worked fill an important need for
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Was Fabrice Tourre Cheating On His Girlfriend? Are CDOs Really Nothing More Than “Intellectual Masturbation”?

Was Fabrice Tourre Cheating On His Girlfriend? Are CDOs Really Nothing More Than "Intellectual Masturbation"?

Courtesy of Tyler Durden

Businesswoman pulling rug from beneath other businesswoman

Zero Hedge is currently going through the 100 or so pages of just released Goldman emails that disclose in excruciating detail the events from late 2006 to late 2007 occurring in Goldman’s mortgage trading business. We will have a lot more to say on this tomorrow, suffice to say that we were pleasantly surprised that C-BASS, which we uncovered recently may be implicated in the Goldman SEC fraud scandal, is again involved. We also feel bad for Harvard and MS Prop, and a little better for Hayman Capital. Stay tuned. In the meantime, we will take a brief detour into the financial yellow pages, as we focus on the curious case of Fabrice Tourre, who once again plays a prominent role in today’s email discovery.

The first thing that caught our attention is the original "Fab Fab" email, finally reproduced in its entirety. One tangent that may be relevant to gleaning some more insight into the character of the "fabulous" 27 year-old mortgage god, is that at the time he penned his email to girlfriend (#1), then Goldman co-worker, Marine Serres, he was likely also with girlfriend (#2) Fatiha Bouktouche, a Columbia University post Doc, to whom he may have been disclosing proprietary Goldman holdings and trades. Who knows to whom, when or how Fatiha may have leaked insider trades whispered to her by Fabrice, and who knows what CDO trades Marine was pitching to the retarded (and soon to be bankrupt) European banks gobbling up everything Goldman would sell them, structured and originated by her boyfriend.

We recreate the original email:

From:       Fabrice Tourre
Sent:       Tuesday, January 23, 2007 11:34 PM
To:          Marine Serres
Subject:   Fw: ft--friday

Darling you should take a look at this article… Very insightful…More and more leverage in the system, l’edifice entier riqsue de s’effondrer  a tout moment…. Seul survivant potentiel, the fabulous Fab (as Mitch would kindly call me, even though there is nothing fabulous abt me, just kindness, altruism and deep love for some gorgeous and super smart French girl in London), standing in the middle of all these complex, highly levered exotic trades he created without necessarily understanding all the implications of these monstruosities !!! Anyway, not feeling too guilty about


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“Frankenstein turning against his own inventor”

(Quote by GS trader Fabrice Tourre.)  

Ironically, "Frankenstein" was the name of the inventor not the monster, though we often associate that name with the creature. Frankenstein’s monster lacked identity. His lack of identity and abandonment by his maker fueled his vile behavior. According to Wikipedia:

Mary Wollstonecraft

Part of Frankenstein’s rejection of his creation is the fact that he does not give it a name, which gives it a lack of identity. Instead it is referred to by words such as "monster", "demon", "fiend", "wretch" and "it". When Frankenstein converses with the monster in Chapter 10, he addresses it as "vile insect", "abhorred monster", "fiend", "wretched devil" and "abhorred devil".

During a telling of Frankenstein, Shelley referred to the creature as "Adam". Shelley was referring to the first man in the Garden of Eden, as in her epigraph:

Did I request thee, Maker from my clay
To mould Me man? Did I solicit thee
From darkness to promote me?

John MiltonParadise Lost (X.743–5)

 

Here’s a collection of articles on the infamous GS subprime shorting routine. – Ilene 

Goldman’s Tourre E-Mail Describes ‘Frankenstein’ Derivatives

By Christine Harper

April 25 (Bloomberg) -- Fabrice Tourre, a Goldman Sachs Group Inc. executive director facing a fraud lawsuit in the sale of a mortgage-linked investment, said an index that facilitated derivatives trading in the market was “like Frankenstein.”

The so-called ABX index is “the type of thing which you invent telling yourself: ‘Well, what if we created a ‘thing,’


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Goldman Email Describes ‘Frankenstein’ Derivatives; Tourre Brags about Selling Abacus to “widows and orphans”; SEC Confident; German Bank Drops Goldman

Goldman Email Describes ‘Frankenstein’ Derivatives; Tourre Brags about Selling Abacus to "widows and orphans"; SEC Confident; German Bank Drops Goldman

Boris Karloff (1887-1969)

Courtesy of Mish 

Goldman Sachs claims it it dis not mislead clients. Its defense will not be very convincing in the face of revealing emails with "fabulous Fab" bragging about dumping Abacus bonds on widows and orphans.

Please consider Goldman’s Tourre E-Mail Describes ‘Frankenstein’ Derivatives

Fabrice Tourre, a Goldman Sachs Group Inc. executive director facing a fraud lawsuit in the sale of a mortgage-linked investment, said an index that facilitated derivatives trading in the market was “like Frankenstein.”

The so-called ABX index is “the type of thing which you invent telling yourself: ‘Well, what if we created a ‘thing,’ which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?’” Tourre said in a Jan. 29, 2007, e-mail released yesterday by Goldman Sachs. Watching the index fall is “a little like Frankenstein turning against his own inventor.”

In a March 7, 2007, e-mail Tourre describes the U.S. subprime mortgage market as “not too brilliant” and says that “according to Sparks,” an apparent reference to Daniel Sparks who ran Goldman Sachs’s mortgage business at the time, “that business is totally dead, and the poor little subprime borrowers will not last too long!!!”

A few months later, a June 13, 2007, e-mail shows Tourre claiming, “I’ve managed to sell a few Abacus bonds to widows and orphans that I ran into at the airport, apparently these Belgians adore synthetic ABS CDO2,” using short-hand for asset- backed collateralized debt obligations squared, or CDOs made up of tranches of CDOs containing asset-backed securities.

Goldman Sachs Readies Forceful Defense

The Washington Post is reporting Goldman Sachs readies forceful response against claims it misled clients

Goldman Sachs is preparing its most detailed defense yet to allegations that it misled clients in its mortgage securities business, arguing that the firm was unsure whether housing prices would rise or fall and did not take any action at odds with the interests of its clients.

Goldman prepared the 11-page document to serve as the basis for testimony that chief executive Lloyd Blankfein is scheduled to deliver Tuesday before the Senate Permanent Subcommittee on Investigations.

The Goldman paper describes debates among top executives in 2006 and 2007 over whether the firm should make investment decisions


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Goldman’s Claim Tourre Acted Alone is Horse$&*t

Goldman’s Claim Tourre Acted Alone is Horse$&*t

Courtesy of Larry Doyle at Sense on Cents 

(If you missed my enlightening interview with Larry, click on "The FINRA Fiasco.") 

Goldman Sachs is playing this SEC charge of fraud by the book. How so? Wall off senior management, pin the blame on one low level junior employee, and sell that individual down the river. This approach by Goldman is not a surprise but, in my opinion, it is total horse$&*t. How so? Let’s navigate the world of structured finance transactions on Wall Street.

Bloomberg reports the Goldman defense in writing, Goldman Sachs Says SEC Case Hinges on Actions of One Employee:

Goldman Sachs Group Inc. said the U.S. fraud case against the firm hinges on the actions of the employee it placed on paid leave this week.

Fabrice Tourre, the 31-year-old Goldman Sachs executive director who was accused of misleading investors about a mortgage-linked investment in 2007, will also be de-registered from the Financial Services Authority, a spokeswoman at the firm in London said yesterday.

“It’s all going to be a factual dispute about what he remembers and what the other folks remember on the other side,” Greg Palm, Goldman Sachs’s co-general counsel, said in a call with reporters yesterday, without naming Tourre. “If we had evidence that someone here was trying to mislead someone, that’s not something we’d condone at all and we’d be the first one to take action.”

By characterizing the case as a dispute involving a single employee, Goldman Sachs may be taking its first steps to publically distance itself from Tourre in the case, some lawyers said. That could reduce bad publicity and ultimately make it easier for the company to settle the case.

Goldman Sachs may also want to separate itself from Tourre if it’s concerned he will cooperate with the SEC or implicate more senior employees, said Onnig Dombalagian, a professor at Tulane University Law School in New Orleans and former attorney fellow at the SEC.

Goldman’s defense is no surprise, but it is pathetic and ridiculous. In pinning all the blame on Tourre, Goldman would like America to believe that a 27-year old junior level employee structuring a synthetic CDO has the ability to sign off on the capital commitment and other legal liabilities associated with this type of transaction. Wow!! Goldman Sachs must truly believe America is incredibly naive.

Within Wall Street…
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Did Goldman And Tourre Break FINRA Regulations By Not Reporting “Fab Fabrice’s” Wells Notice Receipt?

Did Goldman And Tourre Break FINRA Regulations By Not Reporting "Fab Fabrice’s" Wells Notice Receipt?

Courtesy of Tyler Durden at Zero Hedge 

Yesterday we praised two NYT reporters for having uncovered the mess of the Goldman CDO scandal first, and we concluded, erroneously now it seems, that the SEC merely piggybacked on their disclosure to file charges against Goldman. However, as Reuters’ Matt Goldstein reports, Goldman had received a Wells Notice from the SEC as far back as "six months ago", which predates the Morgenson and Story December 24 story. And as the SEC case would likely have taken at least one year to build up, we are confident that the SEC began their investigation into Goldman and Paulson well prior, likely in 2008 if not earlier. For those unfamiliar, a Wells is basically an advance warning that the recipient will be a target of an SEC  investigation. We do not anticipate that anyone aside from Tourre (who, being just 27 at the time of the alleged transactions, in no imaginable way acted alone) and Goldman’s legal counsel was aware of this development, although with allegations that Goldman was dumping various security holdings in advance of the announcement one can never be certain. One key line of questioning has emerged as a result of this disclosure: why was there no official notice anywhere in the public record of this Wells Notice receipt? The precedent is murky when it comes to corporations responsibility to report Wells Notice receipts: certainly, Goldman had no mention of this even in its March 1 10-K

What is however without question, is that Fabrice Tourre, who as we reported yesterday, is a registered broker dealer, has a responsibilty to modify his/her U-4 within 30 days of the Wells Notice receipt, yet as of yesterday there was still "no disclosure of any event about this broker." Assuming Goldman received the Wells 31 days ago or more, it begs the question did the firm, by allowing Tourre not to report the Wells Notice, break Finra regulations, and just why it believes it has the facility to do this?

Below is Tourre’s still unupdated CRD form with Finra, which still show neither a pending civil case, nor any report of a Wells Notice receipt.


Fabrice Tourre

More relevantly, we are keeping a close eye on
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WE DEMAND BANK REGULATION

WE DEMAND BANK REGULATION

Courtesy of The Pragmatic Capitalist

With the news of the SEC’s civil fraud lawsuit against Goldman Sachs it’s now plain as day that we need to pass a bank regulatory bill.  I challenge anyone to read these emails from Goldman Sachs and explain to me or the rest of the American public why we should not demand that these banks be reigned in.  The emails are truly vomit inducing.  This is a fraud perpetrated on the entire American public.  We bailed this company out and then they went on a PR campaign saying they did nothing wrong.  The SEC claims to have evidence that Goldman knew the housing market was going to crash and still sold billions in CDO’s to their clients. Goldman is denying the charges, but the accusations look pretty cut and dry.  In an email Goldman employee Fabrice “The Fabulous Fab” Tourre warned about the coming collapse of the market:

“More and more leverage in the system. The whole building is about to collapse anytime now… Only potential survivor, the fabulous Fab[rice Tourre]… standing in the middle of all these complex, highly leveraged exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”

George Soros says we should break up the banking oligopoly.  I couldn’t agree more.  This banking oligopoly helped cause this banking crisis and for some reason we remain in an unchanged environment.  Why has this been allowed to happen?  Why have we allowed the bank lobbyists to strong-arm our politicians?  Is there any doubt now that the Volcker rule is a necessity to contain these institutions from potentially destroying the economy?  The Enron banking system lives on for now.  Hopefully this lawsuit opens some eyes and gets people mobilized.  The American public should not put up with this….

Read the full complaint with emails herein

 


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Goldman Sachs (GS) VP Email Jan 2007: “The whole building is about to collapse anytime now.”

Goldman Sachs (GS) VP Email Jan 2007: "The whole building is about to collapse anytime now."

Courtesy of Trader Mark at Fund My Mutual Fund

I have no idea the implication but for those of you around a decade ago you know what this parallels… Eliot Spitzer made his career on almost the same exact thing a decade ago.  Investment banks bringing product (IPOs) public, their analysts cheerleading the stocks to the public while writing internal emails about how the companies were complete trash.

Well this London based VP looks like the sacrificial lamb.

  • The suit also named Fabrice Tourre, a vice president at Goldman who helped create and sell the investment

As usual the snake oil never really changes… but in the past the snake oil salesmen would be run out of town.  Now they are protected by government, backstopepd by our Federal reserve, and glorified.  We’ve really evolved as a society :)

  • According to the complaint, Goldman created Abacus 2007-AC1 in February 2007, at the request of John Paulson, a prominent hedge fund manager who earned an estimated $3.7 billion in 2007 by correctly wagering that the housing bubble would burst.
  • Goldman let Mr. Paulson select mortgage bonds that he wanted to bet against — the ones he believed were most likely to lose value — and packaged those bonds into Abacus 2007-AC1, according to the S.E.C. complaint. Goldman then sold the Abacus deal to investors like foreign banks, pension funds, insurance companies and other hedge funds.
  • But the deck was stacked against the Abacus investors, the complaint contends, because the investment was filled with bonds chosen by Mr. Paulson as likely to defaultGoldman told investors in Abacus marketing materials reviewed by The Times that the bonds would be chosen by an independent manager.

———————————

Fascinating to see John Paulson’s firm involved as well – I don’t see any wrong doing on his part but apparently one of his former lieutenants, Paolo Pellegrini was the ‘snitch’. [Oct 2, 2009: Paolo Pellegrini, Formely of John Paulson's Hedge Fund, on Bloomberg]

Full pdf file of SEC complaint here.

p.s. bought some SPY puts to get some hedging going on.


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Zero Hedge

China Lands Spacecraft On Moon To Collect Lunar Rocks 

Courtesy of ZeroHedge View original post here.

According to the Chinese state-run CGTN news channel, China's National Space Administration declared on Tuesday morning that it's "Chang'e-5 successfully landed on the near side of moon." 

Chang'e 5, China's first-ever attempt to collect lunar rocks and conduct a return mission back to Earth, apparently touched down this morning. Not much on the landing was conveyed by CGTN, who only offered a single-sentence statement. 

Over the next few days, th...



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ValueWalk

The Vaccine Rally Could Be Running Out Of Steam

By Gorilla Trades. Originally published at ValueWalk.

Commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q3 2020 hedge fund letters, conferences and more

The Vaccine Rally Is Fading Away

Despite today’s new all-time highs the late-day weakness among cyclicals could mean that the first leg of the vaccine rally could be running out of steam. While stocks started the session in a positive fashion, the leaders of the vaccine rally faded towards the end of the session in the face of the mostly positive news flow, and that warrants caution for bulls, at least from a short-term perspective....



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Phil's Favorites

Salesforce Confirms Deal To Buy Slack

Courtesy of ZeroHedge

It's official. After reportedly entering high-level, late-stage talks, Salesforce, one of the newest members of the Dow 30, has agreed to buy Slack, a former Silicon Valley "unicorn" that IPO'd last year.

Shares of the Slack have surged in after-hours trade on the news, as if the massive surge seen following the initial reports that the two companies were in talks wasn't enough.

Here are the juicy details: $27.7 billion in cash and stock, giving the corporate software giant a popular workplace-communications platform in one of the biggest technology deals...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Kimble Charting Solutions

Will Silver Price Reversal Bring Another Historic Decline?

Courtesy of Chris Kimble

Precious metals caught lightning in a bottle for the first 7 months of the year, with Gold notching new all-time highs and Silver making to multi-year highs in August. But both have reversed lower since peaking in August and investors should pay attention.

It might be nothing… or it might be something! Especially for Silver, which didn’t follow Gold’s lead in making all-time highs.

Today’s chart is a long-term “monthly” chart of Silver. As you can see, it was hi-yo Silver for the first 7 months ...



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Politics

Mythmakers: The Men Who Created Donald J. Trump

 

Mythmakers: The Men Who Created Donald J. Trump

Mark Burnett, Jeff Zucker, and the Trustwashing of a Fake President

Courtesy of Greg Olear, Prevail, author of Dirty Rubles: An Introduction to Trump/Russia 

...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Friday, 12 June 2020, 08:06:43 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Interesting (2)



Date Found: Saturday, 13 June 2020, 12:27:02 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Recession Forecasts Time Frame



Date Found: Monday, 15 June 2020, 11:07:52 PM

...

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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

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