5 ms·

would anyone know what would be the fall out from these charges?

• anigbrowl 16y ago
  I'll hazard a guess (and it is no more than that - IANAL), based on the complaint and the cited statute: - about $2 million in direct fines - return of the $15-20 million GS made in brokerage fees - return of any bonuses made by 'Fab' Tourre - 'equitable relief...appropriate or necessary for the benefit of investors' This last is extremely open-ended and the nature of such relief is up to the court. It can take many possible forms and I have no idea what the norm is in such cases, only that it is technically complex. It does strike me, however, that the complaint specifically mentions two investors; IKB, a german bank, lost $150m; and ACA (who may or may not be considered 'investors' in this context) fell into the arms of Royal Bank of Scotland, who ended up paying ~$860 million to GS, most of which went to Paulson & co. This figure is mentioned explicitly in the complaint. Now, RBS got into trouble themselves (partly as a result of this), and at this point are ~80% owned by the British government. Fabrice Tourre, the Goldman VP at the center of the complaint, currently an executive director of Goldman Sachs International, based in London. This coincidence might or might not have a bearing on the outcome. Knowing the British tabloid press, I'm willing to bet that at least one of tomorrow's front pages will feature a picture of Mr Tourre with a caption along the lines of 'have you seen this man?'