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Former Goldman Trader Found Liable

Chip Somodevilla / Getty Images

WASHINGTON - APRIL 27: Fabrice Tourre (C), executive director of the structured products group trading for The Goldman Sachs Group, prepares to testify before the Senate Homeland Security and Governmental Affairs Investigations Subcommittee on Capitol Hill on April 27, 2010 in Washington, DC. The subcommittee is investigating the role of investment banks during the Wall Street financial crisis. (Photo by Chip Somodevilla/Getty Images) *** Local Caption *** Fabrice Tourre

Tough luck. On Thursday, Wall Street’s regulator, the Securities and Exchange Commission, won its first suit against an employee of a big American bank involved in bad mortgage deals sold to investors before the financial crash. Fabrice Tourre, a former trader at Goldman Sachs, was found liable on six of seven charges and faces a fine or a ban from Wall Street. Observers have criticized the pursuit of a midlevel employee rather than the bank’s executives. In 2010, the SEC charged Goldman with fraud, but settled for $550 million.