WSJ:
Congressional investigators interviewed Fabrice Tourre, the Goldman Sachs Group Inc. trader accused of fraud by the Securities and Exchange Commission, as the company prepared for a showdown with lawmakers at a hearing Tuesday.
Mr. Tourre met in a daylong session Saturday with investigators from the Senate Permanent Subcommittee on Investigations. Mr. Tourre and four Goldman executives, including Chairman and Chief executive Lloyd C. Blankfein, are set to testify before the panel, which is scrutinizing the role of investment banks in the financial crisis.
The SEC alleges in a civil fraud lawsuit filed April 16 that Goldman and Mr. Tourre sold a financial instrument called Abacus 2007-AC1 without disclosing that a hedge-fund firm betting on its decline helped to pick some of its underlying mortgages. Goldman denies wrongdoing, saying all its clients were sophisticated investors and got the information they needed.
Over the weekend, signs of stress emerged in the relationship between Mr. Tourre and Goldman.
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