Definition of Fabulous Fab

Fabulous Fab was the name given to Fabrice Tourre, a former Goldman Sachs derivatives salesman. In July 2013 a civil trial started against him in the US in which the SEC alleged that he misled investors in a mortgage-related security.

The SEC's case rested partly on an email writted by Mr Tourre to his girlfriend who also worked in the bank. In the email, sent in 2007 which he wrote that the whole building was about to collapse and the sole survivor would be “the fabulous Fab (as Mitch would kindly call me, even though there is nothing fabulous [about] me, just kindness, altruism and deep love for some gorgeous super-smart French girl in London), standing in the middle of all these complex, highly levered, exotic trades he created without necessarily understanding all the implications of those monstrosities!!!”

The SEC also alleged that Mr Tourre knew of an undisclosed short interest by hedge fund Paulson in the Abacus 2007-AC1 CDO, and that he misled other parties into believing that Paulson's investment was a long one.

Mr Tourre was the only individual Goldman banker to face an SEC lawsuit.

On August 1 2013, a federal jury found Fabrice Tourre liable for defrauding investors in the derivatives deal. The decision marked the end of a three-year effort by the SEC against Mr Tourre.

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