A jury trial kicks off on Monday in the U.S. Securities and Exchange Commission’s fraud case against Fabrice Tourre, the only Goldman Sachs & Co employee directly targeted by the agency in wake of the financial crisis. Tourre, you’ll recall, is a 34-year-old former trader who marketed an ill-fated collateralized debt obligation known as ABACUS 2007-AC1 to Goldman clients. According to the SEC’s complaint, filed in 2010, Tourre failed to tell investors that the CDO was assembled by the hedge fund Paulson & Co., which helped select the underlying securities and then took a “short position” against the CDO, essentially betting it would fail. Because Goldman Sachs settled parallel charges without admitting wrongdoing back in 2010, the jury’s eventual verdict will inevitably be seen as a referendum on the bank’s culpability for the financial crisis. Here are four things to look for as the three-week trial unfolds.
via Four Things to Look for in “Fabulous Fab” Trial — The Litigation Daily