SEC trying to turn financial crisis poster boy into sacrificial lamb
Next week, Fabrice Tourre goes on trial for securities fraud.
Tourre, now 34, is the former Goldman Sachs investment banker who, in 2007, packaged and peddled a synthetic portfolio of sub-prime residential mortgage-backed securities (RMBS) that collapsed within nine months of its issuance.
Billionaire hedge funders play poker over an activist target
At an investor conference last December, hedge fund activist Bill Ackman spent 3½ hours explaining why Herbalife, the 33-year-old direct marketer of nutritional supplements, was nothing more than a Ponzi scheme whose stock was worthless.
Goldman Sachs made its big blunder in 2007, when it sold $2 billion of a synthetic collateralized debt obligation (CDO) without telling its investors – all large institutions — that the subprime residential mortgage-backed bonds to which the CDO was indexed were being selected by John Paulson.