While Tourre was inside Goldman marketing Abacus to investors (by allegedly misleading them), this man, Andrew Davilman, was inside Goldman Sachs shorting CDOs filled with crap mortgage bonds like Abacus.
The SEC case against Tourre alleges he made the CDO seem more attractive to investors so that they would go long it. He allegedly told investors that Paulson was long $200 million of Abacus, when actually he wasn’t. He was only short it.
According to Michael Lewis’ book, The Big Short, Davilman was betting against similar CDOs on behalf of Goldman around this same time. 2007 was the year when Goldman stopped selling insurance on subprime loans and started buying it for themselves.
Read our minute-to-minute guide to the SEC’s charges against Goldman and Fabrice Tourre –>
Business Insider Emails & Alerts
Site highlights each day to your inbox.