Trial of Former Goldman Trader Gets Under Way

The trial of former Goldman Sachs trader Fabrice Tourre started on Monday morning with a stern warning: No mumbo jumbo.

Judge Katherine Forrest, who is overseeing the trial, told lawyers representing Mr. Tourre, and the Securities and Exchange Commission, which brought lawsuit against him, to “have a heart” and try and keep the case simple for the nine jurors selected to hear the case.

“Do not assume people know what an investment bank does,” she said.

Mr. Tourre is defending himself against allegations that he was part of a conspiracy in 2007 to mislead investors when selling a mortgage security that ultimately failed. Mr. Tourre, a trader stationed in Goldman’s mortgage department when the S.E.C. brought its case, is one of only a handful of employees at big Wall Street firms to land in court over the financial crisis.

Mr. Tourre was in court this morning, wearing a dark suit with an orange-patterned tie. He arrived early, and before trial was seen engaged in animated conversation with his lawyer Sean Coffey.

Jury selection dominated most of the morning, but before that Ms. Forrest listed several words she wants lawyers to steer clear of.

“Trading desk, mere mortals don’t know what a trading desk is,” she told the courtroom. She also asked lawyers to steer clear of or not use other words, including protection, intermediate, swap, inventory, circular, warehouse, offering memorandum and premiums. She referred to the term “synthetic C.D.O.,” a security at the heart of this case, as “gibberish.”

Another taboo word is intermediate. “Need I say more,” she said.

Lawyers on each side plan to draft a list of terms and definitions, and it will be circulated to jurors. If the lawyers assume the jury understands them, jurors “are going to be horrified,” the judge said.