Fabrice Tourre emails & Daniel Sparks Goldman Sachs testimony in fraud case hearing

Filed in Gather News Channel by on April 27, 2010 0 Comments

The Goldman Sachs investor fraud case continues as the Senate Permanent Subcommittee on Investigations grilled various key witnesses and individuals involved in the case.  Today’s hearings included Goldman Sachs VP Fabrice Tourre and CEO Daniel Sparks’ Goldman Sachs testimony.  The Fabrice Tourre emails have recently been in headlines as the VP bragged about being “The Fabulous fab”, and the VP during testimony claimed “I did not mislead investors.”  Daniel Sparks was generally evasive when questioned by the committee over the 2008 financial crisis.

The committee’s Carl Levin asked Sparks how he could get comfortable with the securities they allowed investors to get duped on, based on the source and how much money was involved.  Levin said he was going to ask for the last time “Did you not have an obligation to disclose, hey we’re not comfortable, we’re selling on the short side.”  Levin hammered away at Sparks- “If you have an adverse interest to your client when selling them something, do you have an obligation to tell that to your clients?”  Sparks acted puzzled by the question but Levin said “I don’t think you want to answer it.”

The SEC released a variety of Fabrice Tourre emails regarding his alleged role in the Goldman Sachs defrauding of investors by selling them bad mortgages, that Paulson & Co. was betting against.  Goldman Sachs profitted by at least $15 million in the deal. In one email, Tourre discussed selling off some of the products to widows.  Another email Tourre wrote to his girlfriend said:

“Anyway, not feeling too guilty about this, the real purpose of my job is to make capital markets more efficient and ultimately provide the U.S. consumer with more efficient ways to leverage and finance himself, so there is a humble, noble and ethical reason for my job ;) amazing how good I am in convincing myself !!!”

Both Goldman Sachs and Fabrice Tourre are being sued by the Securities & Exchange commission over their role in the fraud case.  The action was initiated by the SEC earlier this month with hearings ongoing.
Read more about the Fabrice Tourre emails here at CBSNews.com.  Also, see video footage of Daniel Sparks Goldman Sachs CEO here at Huffington Post.

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