“More and more leverage in the system, The whole building is about to collapse anytime now! Only potential survivor, the fabulous Fab[rice Tourre] standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!” —a portion of an e-mail, translated from the French, from 31-year-old Goldman Sachs vice-president Fabrice Tourre, to a friend on January 23, 2007. The S.E.C today filed securities charges against Tourre and Goldman Sachs, alleging that the company misled investors about the health of subprime-mortage securities. [Earlier]
