Fabrice Tourre, the Goldman executive (now on leave) named in the SEC’s civil suit against the investment bank, will tell a Senate subcommittee today that a mortgage-related security at the heart of the suit “was not designed to fail.”
In prepared testimony, Tourre says: “I deny–categorically–the SEC’s allegation. And I will defend myself in court against this false claim.”
Read his prepared testimony here.
It does seem, however, that Tourre knew that the mortgage products he was selling were problematic, writing in one email that “that business is totally dead, and the poor little subprime borrowers will not last so long!!!” — and then gloating a few months later about selling that product to a “widow and orphans.”
Watch Tourre — and Goldman Sachs CEO Lloyd Blankfein — testify before the Senate Subcommittee on Investigations here.
