Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • Hamas and Israel sustain fire despite missed targets

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Kerry holds all-night talks with Afghan presidential rivals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

Business

Convicted French banker 'Fabulous Fab' teaching economics in US

© AFP

Text by FRANCE 24

Latest update : 2014-02-26

Students who have enrolled in “Elements of Economics Analysis” at the University of Chicago this term might benefit from the unique practical experience of their teacher, Fabrice Tourre.

Tourre, a 34-year-old Frenchman, is working as a teaching assistant while studying for a doctorate in the prestigious economics department that for many years boasted Milton Friedman among its members.

Friedman was famous for winning the Nobel Prize while Tourre is notorious as the only banker so far convicted of charges arising from the 2008 Wall Street crisis.

Tourre worked for Goldman Sachs where he helped construct a scheme with which the bank could make money by packaging mortgages for sale even though it believed, rightly, that the market was about to collapse.

After the crisis, Goldman Sachs struck a deal with the US authorities and paid 550 million dollars. Tourre was tried.

Last August he was found liable on six of seven counts of securities fraud. He is appealing the size of his fine. He wants to pay 65,000 dollars, the authorities want a sum that could total more than 1 million dollars.

Meanwhile, Tourre, who used to sign e-mails “Fabulous Fab,” has gone back to school.

He already has a degree in maths from the École Centrale in Paris and a Master’s in operations research from Stanford University. Now he teaches his class on Thursday afternoons and runs a discussion section on Monday evenings.

His professors at Chicago find Tourre intelligent.

“He was one of my best students,” one professor, Nancy L. Stokey, told the New York Times.

Another, professor Robert Shimer, said: “He’s someone who, if he continues on the same track, is going to be one of our top job market candidates.”

His classmates agree.

“People like Fabrice, who come from investment banking, are very useful in the program," one told the Wall Street Journal. "As academics we tend to be on the outside, and investment banks tend to be closed. People are joking that economists develop these models, but the real world is much messier.”

'Face of Wall Street greed'

The question is whether someone with Tourre's history should have an academic career.

“Would any business school be willing to hire Tourre who has become the face of Wall Street greed?” asked Michael A. Santoro, a professor of ethics, in the New Yorker magazine.

Santoro then quoted another academic, Hervé Alexandre, a finance professor at Université Paris-Dauphine, who said of Tourre: “He’s very skilled in pricing highly complex products, which are still very important for the future of finance.”
 

Date created : 2014-02-26

  • USA

    Ex-Goldman trader 'Fabulous Fab' found guilty of fraud

    Read more

  • USA

    French banker ‘Fabulous Fab’ goes on trial in New York

    Read more

Comments

COMMENT(S)