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Goldman Sachs Trader Found Liable For Fraud Teaching At University Of Chicago

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The University of Chicago has always been notorious for lacking integrity – intellectual and otherwise. Founded by oil monopolist and banker John D. Rockefeller, the University of Chicago has been the hell-mouth for Neoliberal quackery for generations perhaps most notoriously as patient zero for Professor Eugene Fama’s virulent  “efficient market hypothesis” – a theory that helped justify the reckless deregulation that crashed financial markets in 2008.

Now U of C is getting another free market apologist, this one with real credentials – Fabrice “the Fabulous Fab” Tourre.

A former Goldman Sachs trader found liable for securities fraud six months ago will no longer teach an economics honors class to undergraduate students at the University of Chicago this spring — but he will still teach as part of his Ph.D. requirements, the university announced.

Fabrice Tourre, a former bond trader who called himself “Fabulous Fab” in emails to his girlfriend and bragged about selling worthless mortgage bonds to widows and orphans, will teach graduate students in an unspecified course at an unspecified time, said a university source who asked not to be named.

Tourre surely has a few things to teach students aspiring to be banksters. He probably has a few warnings too like “don’t put it in an email.”

A lesson he had to learn the hard way both in his civil case and infamous testimony before Congress on Goldman Sachs’ role in creating a crisis in the mortgage securities market for which Goldman Sachs ultimately paid a fine.

A federal court jury in New York last August found Tourre liable on six of seven counts of securities fraud for his role in one of the highest-profile civil cases related to subprime mortgage fraud. The fraud cost investors $1 billion and presaged the nation’s financial crisis and housing mortgage meltdown…

The SEC had accused Tourre of misleading investors about subprime mortgage securities that he knew would fail.

So while the millions of victims of Goldman Sachs’ fraud still try to recover from the housing crisis Goldman and Tourre created, the Fabulous Fab moves on to greener pastures despite being one of the few banksters to enter a courtroom and be found liable.

 You can’t keep a bad man down in this country.

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Dan Wright

Dan Wright

Daniel Wright is a longtime blogger and currently writes for Shadowproof. He lives in New Jersey, by choice.