Goldman Sachs banker Fabrice Tourre to testify in Congress
Wednesday, April 21, 2010; 8:13 PM
NEW YORK -- Fabrice Tourre, the 31-year-old Goldman Sachs banker at the center of the SEC's case against the firm, will testify in Congress next week along with his boss, chief executive Lloyd Blankfein, according to sources.
Tourre and Blankfein are to answer questions before the Senate's Permanent Subcommittee on Investigations on Tuesday, said the sources, who spoke on condition of anonymity because they were not authorized to speak publicly on the matter.
While Blankfein's appearance before the panel was scheduled before the SEC's lawsuit Friday, Tourre has now agreed to testify as well, according to one of the sources. The hearing was to discuss Goldman's role in the mortgage crisis, but much of the questions are now expected to focus on the civil fraud lawsuit.
The SEC's lawsuit accuses Goldman and Tourre, the only individual named in the case, of selling investors a subprime-mortgage investment that was secretly designed to lose value. It says Tourre, was "principally responsible" for creating and marketing the security, known as Abacus 2007-AC1.