Tourre to Testify?

Bloomberg News is hearing that Fabrice Tourre–the trader at the center of the fraud complaint against Goldman Sachs–will testify before a Senate committee next week.

Presumably, the idea is to show Mr. Tourre and the bank have nothing to hide. The speculation is that Mr. Tourre will try out the line that he thinks he remembers disclosing to investors that a counterparty was betting against the same package he was selling as an investment.

Goldman has all but said the case hinges on Mr. Tourre’s actions alone, and if he misled anyone, well, the bank certainly wouldn’t condone that. A panel of grandstanding senators seems like a quick way to find out how his story holds up under public scrutiny.