NEW YORK /WASHINGTON (Reuters) – Fabrice Tourre and his girlfriend talked like a couple deeply in love.
e-mails back and forth about how they wanted to curl up in the arms of another, and how they wanted the tender moments together. Tourre, a bond trader at Goldman Sachs, also wrote in his e-mails about the imminent collapse of the subprime mortgage market and how he was plotting ways to make money from Goldman that.
They knew that three years later those very personal1000emails, letters through the post Tourre account at Goldman Sachs, would become part of the further research on the subsequent financial crisis.
In the emails exchanged between Tourre and his girlfriend, Marine Serres, Tourre appears as a young operator, providing for the crisis hot even though he was still selling products backed by subprime mortgages of poor quality so prolifically that could be sold to “widows and orphans. “
Tourre But, the only accused by the Securities and Exchange Commission United States in its fraud case against the firm, also appears in ethical conflict.
“Either way, do not feel so guilty about this, the real purpose of my job is to make capital markets more efficient and ultimately provide American consumers with more efficient ways to leverage and funded by what are reasons humble, noble and ethical for my work;) is impressive how well I”m convinced myself Tourre !!!”, said in an e-mail to Serres in January 2007.
The paragraph in an email that reflects the conflicting views that had Tourre about his role in the subprime crisis was immediately followed by another paragraph that the SEC issued in its application earlier this month.
demand Tourre SEC included only referring to himself as the “Fabulous Fab” and talking about “being in the midst of all these complex operations, highly leveraged and exotic, which created not necessarily understand all the implications of these !!!.”
SEC Tourre considerations left out of demand.
Goldman Sachs Tourre mails published during the end week while preparing for his appearance Tuesday before a Senate panel. It is expected that the chief executive of Goldman Sachs, Lloyd Blankfein, and Tourre testify along with other former and current executives.
The collection of e-mails also show that Tourre was not the only person Goldman with confidence that the subprime market was over.
is also expected to Daniel Sparks, former head of Goldman”s mortgage department, testifying Tuesday before the Permanent Subcommittee on Investigations of the Senate.
“According to Sparks, that business is completely dead, and the poor little subprime borrowers will not last as Tourre !!!”, wrote in an e-mail to his girlfriend on March 7, 2007 .
Tourre, who refers to Serres at a time like a “super-French girl in London” – also tells investors to sell unconscious on the type of synthetic collateralized debt obligations, or CDO, which is at the heart of the case of the SEC.
The SEC charged that Goldman Tourre and fraudulently marketed in a debt obligation “Abacus” hiding vital information to investors, including the role that hedge fund Paulson Co played in making mortgage products related to the CDO. Co Paulson bet against the CDO.
“They just do to the country of his favorite clients! I managed (sic) to sell a few bonds abacus to widows and orphans I shot at the airport, apparently those Belgians love the abs cdo2 synthetic “wrote Tourre in June 2007.
Early in 2007, in an e-mail to a friend shares his Tourre fears that the product he helped create is crumbling, and jokes about it.
“This is bizarre, I have the feeling to come to work every day and relive the same agony, a bit like a bad dream that is constantly repeated, “wrote Tourre.
&qu1000ot; In short, I am marketing a product than a month ago was worth $ 100 and which alone is worth $ 93, and which is losing an average of 25 cents per day . That does not sound like much, but when you consider that we are buying and selling these things that have nominal amounts of billions of dollars, well, that adds a lot of money, “he said.
added “When I think I had some role in the creation of this product (which incidentally is a product of pure intellectual masturbation, the kind of thing that you invent yourself saying,” Well, we created a “thing” which no purpose, which is totally conceptual and highly theoretical and that no one knows how to fix the price? “) the heart sick to see it fall in the middle of the flight … is a bit like Frankenstein turning to his own inventor)”
Tourre, who was 28 when he wrote the emails, notes how strange it is to be so young and being in a role with such pressure on him in the firm to make money.
“… Now I”m considered a dinosaur in this business (in my signature on the average longevity of an employee is between 2 and 3 years!) people ask me for career advice. I feel I”m going crazy and I have only 28! Well, I”ve decided to work two more years and retire. “
(Reporting by Steve Eder in New York and Karey Wutkowski in Washington, editing by Matthew Lewis in Spanish)