Fabrice Tourre was found guilty of defrauding investors while at Goldman Sachs (NYSE:GS) when he was peddling mortgage deals to investors who have proven to be less than smart. He will be fined $650,000 in penalties.
The judge, Katherine B. Forrest of the Federal District Court in Manhattan, further ruled Mr. Tourre had to forfeit $175,463 in bonus that was arguably tied to his work on the mortgage deal, plus 3 percent interest.
They nailed the tricky French guy with the accent because it was easy.
What is Fabrice Tourre doing these days and does he care?
George Gutowski writes from a caveat emptor perspective.
It’s about five years since the 2008 melt-down and Washington is still prosecuting and bringing new charges against banks for their roles in mortgage-backed securities. The Banks need to make a Big Political Bargain and call the Federal dogs off. Fines are in the hundreds of millions. Costs of litigation and senior level distraction are in the tens of millions. The banks need to staunch this flow and look to the future.
The government needs to realize the banking sector is the aircraft carrier of the economy. Must be protected at all costs. So stop with the lawsuits regardless of ideological justification.
Obama has three more years. Republicans can’t win the White House without better Latino support in three years. Three years plus of litigation can be a long time.
So make a deal banks. This has to be business and not personal. Someone needs to be able to have the right lunch with Senator Elizabeth Warren and lay the ground work for the next ten years. Not fight rear guard actions because of the past ten years.
George Gutowski writes from a Caveat Emptor Perspective.