Thursday, 28 August 2014
Last updated 5 hours ago
Jan 3 2013 | 11:43am ET
Paulson & Co. has been sued for its role in a controversial Goldman Sachs collateralized debt obligation.
ACA Financial Guaranty Corp., which invested in and insured the CDO, Abacus-2007-AC1, added Paulson as a defendant in its lawsuit against Goldman, filed two years ago. ACA alleges that the hedge fund "at a bare minimum…gave Goldman Sachs substantial assistance in achieving the fraud."
According to ACA, Goldman misled it about Paulson's role in selecting the securities that went in to Abacus. The company claims the CDO was already "worthless" when Goldman marketed it to ACA.
According to the Securities and Exchange Commission, Abacus was structured and marketed on Paulson's behalf, and the hedge fund was shorting it. Paulson called ACA's amended complaint "completely without merit."
"As there is no basis in law or fact for the proposed amendment, Paulson will defend itself against this baseless action if the amendment is allowed," spokesman Armel Leslie said.
ACA had sought $120 million from Goldman.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...