Tourre Did Nothing Wrong, Goldman Exec Testifies

Law360, New York (July 19, 2013, 7:42 PM ET) -- A Goldman Sachs Group Inc. director told jurors Friday that former Goldman trader Fabrice Tourre, who has been accused of fraud, did nothing wrong in connection with the allegedly designed-to-fail Abacus product.

Jonathan Egol, a Goldman managing director who worked on Tourre’s trading desk, testified that Tourre stuck with normal industry practices in his work structuring Abacus 2007-AC1, a collateralized debt obligation that closed in 2007.

The U.S. Securities and Exchange Commission claims the product, a bundle of residential mortgage backed securities, was designed to fail...
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