Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Goldman Sachs’s Egol Retires After Heading Team That Made Abacus

Don't Miss Out —
Follow us on:

Feb. 28 (Bloomberg) -- Jonathan Egol, a Goldman Sachs Group Inc. trader whose desk produced the security that prompted the Securities and Exchange Commission to sue the firm, has retired.

Egol, 44, left the New York-based bank earlier this year, said Michael DuVally, a company spokesman. He joined the firm in 1998 and was named a managing director in 2007.

Goldman Sachs paid a then-record $550 million in 2010 to settle an SEC suit over the marketing of a synthetic collateralized debt obligation dubbed Abacus 2007-AC1. The firm created a committee that year to review its business standards and practices.

The SEC sued Fabrice Tourre, 35, one of the employees under Egol, after dropping a plan to file claims against Egol, according to interviews with SEC enforcement staff conducted by the agency’s inspector general. Tourre was found liable in a jury trial last year in which the SEC claimed he intentionally misled investors in the deal.

Egol testified in Tourre’s trial in July that he was “not aware of any” disclosures to investors that Paulson & Co., which stood to make money from the failure of the transaction, helped select the assets underlying it. Egol said Tourre did tell a superior that the hedge-fund firm run by billionaire John Paulson helped pick the portfolio of 90 subprime mortgage-backed securities.

The Wall Street Journal reported the departure earlier today.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.