Sunday, 26 February 2017
Last updated 1 day ago
Jun 14 2010 | 12:16pm ET
Service on the Securities and Exchange Commission is becoming a lucrative business, with another hedge fund adding a pair of former commissioners to its board of directors.
Paulson & Co., recently embroiled in the Securities and Exchange Commission’s fraud lawsuit against Goldman Sachs, has named former SEC Chairman Harvey Pitt and former Commissioner Roel Campos as independent directors. According to the New York Post, talks with the two began as much as eight months ago, long before Paulson’s name emerged in connection with the Goldman case.
Paulson has not been charged with any wrongdoing it the case. But according to the SEC, it paid Goldman $15 million to structure and market a collateralized debt obligation that it then shorted. Goldman is accused of misleading the investors in that CDO.
Campos, who served on the SEC from 2002 until 2007, brushed aside questions about Paulson’s ethics.
“I’m looking forward to it and I wouldn’t do it unless I thought he was a great shop and ethics were the word of the day,” Campos told the Post.
Pitt, who headed the SEC from 2001 through 2003, has consulted for Paulson in the past.
Paulson’s move follows decisions by Millennium Management and Pershing Square Capital Management to set up regulation and compliance boards. Last month, Millennium told its clients that it had appointed Pitt and two former SEC commissioners, Aulana Peters and Joseph Grundfest, to its compliance board. Millennium also named former SEC enforcement chief and federal judge Stanley Sporkin, former Federal Bureau of Investigation director Louis Freeh and former TIAA-CREF chief investment counsel Peter Clapman to the board.