Legal issues aside, I’m surprised that this particular email from Goldman Sachs VP Fabricio Tourre hasn’t been the subject of more attention for reasons other than the hilarious nickname:
“…More and more leverage in the system, the entire system is about to crumble any moment…the only potential survivor the fabulous Fab (as Mitch would kindly call me, even though there is nothing fabulous abt me…) standing in the middle of all these complex, highly levered, exotic trades he created without necessarily understanding all the implications of those monstruosities !!!“
Name-calling aside, this tends to sharpen one’s sense that a fair amount of what happens on Wall Street is some form of scam. Not necessarily a criminal fraud—what telephone psychics and the people advertising on late-night television are selling isn’t illegal—but still a scam. A guy can be a Vice President at one of the most prestigious investment banks in the world and be emailing people in private about how he doesn’t understand the complex exotic trades he created? Why would you want to be in business with a firm like that?