Fabrice Tourre

Goldman Sachs has been fined $650,000 by the Financial Industry Regulatory Authority for failing to properly disclose to regulators that two of its executives were going to be investigated by the Securities & Exchange Commission, FINRA announced Tuesday.

Wall Street: Money Never Sleeps is firmly based in the new financial world, in which the wise, confident Masters of the Universe have been replaced by slick, young math prodigies feverishly creating and selling bizarre securities with little interest in the long-term implications of their actions.

The financial crisis was produced by a complex set of circumstances, including a massive housing bubble, poor regulation and irresponsible lending on an epic scale. A handful of bankers became the public faces of the crisis, and now, two years later, we take a look at what became of them.

In Tuesday's legal news, the Texas Attorney General has joined the long line of plaintiffs against BP, filing an environmental enforcement action over air pollution that spewed for 40 days from a BP refinery in Texas.

Former newspaper mogul Conrad Black will get out of jail on bail as he appeals his conviction for defrauding shareholders based on the now-narrowed "honest services" statute. The bail order comes even though Black was also convicted of an obstruction of justice charge.

The bank's shares were hammered on Friday as Wall Street finally woke up to its enormous reputational damage. This follows reports that a criminal investigation is being considered.

For a star witness, Fabrice "the Fabulous Fab" Tourre had more of a supporting role in Tuesday's Senate hearing into Goldman Sachs's contributions to the subprime mortgage disaster. He largely stayed on message and let other executives do the talking.

Testifying with several former and current Goldman executives, the young trader is offering a vehement rejection of the charges against him and his firm. "I deny -- categorically -- the SEC's allegation." The SEC's lawyers will be listening closely.

In forming its defense against SEC charges of fraud, the investment bank seems to be throwing VP Fabrice Tourre under the bus and says it lost money on the deal in question. Do these claims hold water?

The SEC notified the investment bank sometime in the last six months. Many companies disclose such notifications -- but Goldman didn't. This is the latest incident to reinforce perceptions of the bank's harmful secrecy.