Fabrice Tourre has “preliminary” settlement talks with SEC, reports claim

11 August 2010

Fabrice Tourre, the Goldman Sachs executive at the centre of an investigation into trading irregularities at the bank, has had “preliminary” talks over a potential settlement, reports have claimed.

Earlier in the year the Securities and Exchange Commission (SEC) alleged that the investment bank and its employee had misled investors over an investment product related to subprime mortgage securities.

Goldman Sachs acknowledged it had made a mistake in relation to the listing and agreed to pay a $550 million settlement with the industry regulator.

Lorin Reisner, a lawyer for the SEC, said that talks between the court and Mr Tourre’s legal team have begun.

“I would characterize us as having very preliminary discussions along those lines a while back, and that’s all,” he stated.

Mr Reisner added that the SEC expects to provide the Goldman employee’s lawyers with more than 90,000 documents while 25 witnesses may provide testimonies.

Pamela Chepiga, a lawyer acting on behalf of Mr Tourre, said that he may ask as many as 50 witnesses to provide evidence if a trial was to go ahead.

The employee is currently on paid leave from his position at the bank.

By Jim Ottewill

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