02/08/2013 World Business Report

Those are the latest headlines. Now it is time for the World Business

Fabrice Tourre liable for a billion-dollar fraud on investors.

One official calls him the face of Wall Street greed.

They've done it again - record highs for the US market. Can the latest US

An exciting snapshot of all the latest world of business and money.

We also have some news we will talk about from IAG, the international

airline group. We will talk about the shortly.

First, let us start with this man right here. The former Goldman Sachs

trader, Fabrice Tourre, otherwise known as Fabulous Fab. He has been

found liable on six of seven counts of fraud by a New York jury over his

role in investments that were linked to the sub-prime mortgage market

which saw Goldman Sachs' clients lose $1 billion. It is the biggest

trial to come out of investigations by US financial regulators into the

cause of the 2008 financial crisis. They are ailing this is a major

victory. As we report, some are asking why a relatively junior

trader is just one of the few people so far brought to book for this

crisis. He was one of only a handful of Wall

Street workers to ever make it to court. It took a jury only two days

to decide Fabrice Tourre, better known as Fabulous Fab, had in fact

misled clients by selling them doomed financial products loaded

with bad mortgages. The failure of those mortgage-backed securities was

seen as the catalyst for the financial crisis. You can have one

of two responses to this. You can call it a major win for the SEC, a

big win in court. Or you can look it at as they got a measly verdict

against a mid-level banker who really wasn't one of the big guys

responsible for what went wrong. Fabrice Tourre's employer at the

time, banking giant Goldman Sachs. It was also charged with fraud but

settled with American regulators back in 2010, paying what was then a

record fine of $550 million. Since then, Goldman Sachs has been able to

distance itself from the financial crisis, but Thursday 's verdict

recasts a shadow on the banks reputation ?I ? reputation ing an

Auckland. What happens now to be Fabulous Fab? He faces potential

fines and even a possible banning from the financial industry. The

same industry whose reputation continues to be stained by the sins

of its past. Let's stay with the fallout from the

crisis. We moved to Ireland for the last part of our global series on

housing. The country was hit by the bust in the property market five

years ago. House prices have recently started rising. That is

little consolation to some owner is -- homeowners, who pay mortgages on

houses that were never completed. An Irish beauty spot where the

property market boomed in better days. John Ryan borrowed almost

200,000 euros for a retirement home here, but the dream became a legal

nightmare and the builder went out of my bet -- out of business. John

has been barred from moving in because the state was never

finished, though he still has to keep paying back his mortgage. His

patience snapped recently when he decided to break in to his own home.

We had finished up with a bridging loan and that was paid for the last

seven years. The interest rates are higher than the normal rate because

it is a bridging loan. We have never missed a payment and we are paying

for seven years. We have no authority to move into our property.

Even if you cannot live in your house, walking away from loans has

serious legal consequences under Irish law. The boom has left Ireland

with a debt hangover for those stuck with a high mortgage at a house they

cannot sell in a recession. The only growth in the construction industry

would be the weeds growing on housing estates like this one,

abandoned when the crash came. It is as if time stood still after some

cataclysmic event. That is what has happened to Ireland economic way and

it has left behind a legacy of problems for many people who bought

houses during the boom. The shop workers continued paying a mortgage

for seven years, but she too cannot get into the house during Ireland's

boom. -- Michelle Burke. So far the episode has cost her and her husband

over 300,000 euros. I went to school here, so it was my dream to have our

first home together here. We were very excited about it. It has become

a living nightmare. We just cannot believe it happened to us. Across

the country, around 200,000 houses and apartments my empty. Rebuilding

Ireland's economy is likely to take a lot longer than than it took to

build them. Let's turn our attention to the US.

That me tell you, the markets have done it again. New eyes on Thursday.

In fact, new record closes for the Dow Jones and the S&P 500. So, why

all the commission on Wall Street? Investors seem to believe that they

have the best of both worlds. And improving US economy, but also the

problem from the Federal reserve that for now it will keep the desert

are going, that massive stimulus programme of $85 billion every

month. -- Suker going. Jobseekers will be key to keeping it going. --

job figures. They are expected to show that 800 184,000 jobs were

created for month. Show that 184,000 jobs. That will bring the jobless

rate down to 7.5%. Getting better, but higher than the 6.5% the reserve

was to see before winding down the stimulus.

The reason economists followed the jobs at closely is this - is what

they call forward-looking economic figures. If there were more jobs

available last month, the more people would get paid and they will

spend more money. Then, more up with demand. In a country where

consumer spending accounts for more than two thirds of all economic

activity, that will then boost growth. The Jobstart gives them

ideas of where the economy is headed. Recent figures show that the

world 's biggest economy is definitely looking better and the

jobless rate has been falling steadily from the decades height of

10% in October, 2009. While there have been significant improvements,

there is still 2 million fewer jobs today than before the recession.

Another concern is the duration of unemployment. People are spending

much longer out of work than five years ago. We will bring you this

jobs numbers as soon as they are out. One of my favourite subjects,

the airline business. Investors are awaiting the latest quarterly

numbers from IAG. The owner of British Airways and Iberia. It is

likely to show that the fortunes of the two sides of the business are

continuing to diverged. EA doing well, but Iberia continuing to

struggle with huge challenges in the Spanish market. That is it in a

nutshell for IAG. Iberia is the ball and chain around this group 's

ankle? It absolutely is. They are not held by the Spanish economic

backdrop. They have a lot of their own problems to work out. The

chairman has made it clear that they need to get themselves in a lean and

efficient state or the company will not see a positive future. The boss

of IAG actually said that Iberia will not get any more investment in

the litigants its act together. Can that happen without the investment?

I think it can. It is challenge. If you look at his own spirits. He did

it at Aer Lingus and with British Airways. There is a lot of

inefficiency that can be improved. We have seen in the first quarter of

the year they actually took out capacity because it is not needed in

the week Spanish market. In the second quarter they have moved on to

reducing manpower and salaries. It is not going down well in Spain, not

only with unions, but with bosses as well. Some people have classed

Iberia as a bit of a basket case. the other hand, it has a bit of a

golden goose. If it was turned around and could be a pretty good

airline. It has all those routes to Latin and South America. They didn't

buy into Iberia for nothing. The management see that Latin America

price. Madrid airport, unlike Heathrow, is not constrained. It has

spare capacity. The Latin American imports will grow in the future.

Iberia is a very natural airline to Let's take a flash of the markets.

Following that optimism on Wall Street, all eyes and ears on the