Ironically, ex-Goldman Sachs banker Tourre got the bad end of a deal

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Ironically, ex-Goldman Sachs banker Tourre got the bad end of a deal

Top Story: Why the SEC should not be applauding its latest Wall Street conviction.

Meet the SEC's only conviction of an employee of a major American bank in relation to the 2008 financial collapse.AP

Aug. 1, 2013, 8:24 PM EDT

By John Flowers

Top Story: Why the SEC should not be applauding its latest Wall Street conviction.

You would assume that any time a Goldman Sachs VP is found liable for fraud, an angel gets its wings. (The Wall Street Journal)

Particularly if his nickname is “Fabulous Fab”. (Business Insider)

Fabrice Tourre was convicted on 6 out of 7 claims of violating federal securities laws and now faces “potential fines and a possible ban from the financial industry.” (Associated Press)

In part, perhaps, because he tried to define a line between the terms “false” and “not accurate”. (Reuters)

And then there were those sarcastic emails about creating “monstrosities” and selling them to “widows and orphans.” (Sam Gustin) and (BBC)

And yet there is something hollow about the victory — perhaps because Tourre is now the SEC’s only successful conviction of an employee from a big American bank since the financial collapse. (DealBook)

“I was always pretty sure Fabrice Tourre was behind the entire global financial meltdown. And now we finally know. The mystery is solved.” (Ben White)

After all, Toure may be a VP of Goldman Sachs but it seems everyone’s a VP of something in world of finance. And, frankly, “he is the lowest-ranking face on the totem pole of Goldman’s former mortgage team.” (Heidi Moore)

“In the list of bad guys from the run-up to the financial crisis, I have a hard time putting Tourre in the top 100 villains.” (Neil Irwin)

And then there’s Goldman Sachs. Toure may have delivered the pizza but Goldman Sachs helped bake it. For their crime, Goldman paid a hefty $550 million fine. However, it admitted no wrongdoing. (SEC)

That’s one of the largest civil penalties ever for a Wall Street firm. Of course, in the most recent quarter, profits doubled to $1.9 billion. So, they should be fine. (Goldman Sachs)

“The two banks that bought the Abacus deal both received multiple bailouts from the taxpayers of Germany and Britain.” (The Washington Post)

Frankly, the conviction feels a lot like the plot of “Paths of Glory”, where generals successfully pass blame — and the firing squad — for a poorly planned military attack onto much lower-ranking soldiers. (Wikipedia)

Mind you, this verdict may come as a surprise to Tourre, who’s lawyers decided to call no witnesses. Yeah: whoops. (John Carney)

And on a final, side note, the verdict also would appear to be yet another lesson for the “Breaking News!” industry: Always be sure to jump on the news and not a hand grenade. (TV Newser)

John Flowers