Tell me and I forget. Teach me and I remember. Involve me and I learn. Benjamin Franklin

Saturday, March 1, 2014

University of Chicago Hires Notorious Goldman Sachs Fraudster to Teach Economics to Undergrads

By Patrick Caldwell

Mother Jones | Thu Feb. 27, 2014

The lone individual found liable for committing fraud during the lead up to the financial crisis will soon be teaching undergrads the basics of economics at one of America's most prestigious universities. Former Goldman Sachs banker Fabrice Tourre—better known by his self-assigned nickname, "Fabulous Fab"—is studying to get his Ph.D. in economics from University of Chicago. Per the Chicago Maroon, the school's student newspaper, Tourre will teach a class this semester, offering honors students the opportunity to learn "Elements of Economics Analysis 3" from a man who owes over $1 million in fines to the Securities and Exchange Commission. 
Tourre is a poster child for Wall Street malfeasance. While working at Goldman in 2007, he designed a financial product called Abacus 2007-AC1. This collection of mortgage-backed securities was designed to fail—hedge funder John Paulson had asked Goldman to sell a package of bad mortgages that he could then bet against. Thanks to Tourre and the foreclosure crisis, Paulson made a cool $1 billion. Fab and Paulson knew Abacus was a bum product from the get-go, but Tourre hid that information from investors. Goldman rewarded Tourre handsomely for the scheme: He was promoted and earned a reported $2 million.

Read more....

No comments:

Post a Comment