Thursday, 26 November 2015
Last updated 10 hours ago
Mar 19 2013 | 12:47pm ET
Paulson & Co. said that it had done nothing wrong in its dealings with Goldman Sachs on a collateralized debt obligation, and asked a judge to dismiss a lawsuit to the contrary.
The hedge fund yesterday said it had not misrepresented anything about the CDO, Abacus 2007-AC1, and that its "obligations ended" after it struck a deal with the bank to short the vehicle. Paulson's lawyers cited three federal investigations, all of which looked at Abacus "without finding any wrongdoing by Paulson."
ACA Financial Guaranty in January added the hedge fund to its lawsuit against Goldman, alleging that the hedge fund misled it along with Goldman about Paulson's role in the CDO. ACA, which both invested in and insured Abacus, alleges that Paulson and Goldman conspired to conceal the former's role in selecting the securities that went into Abacus and then the fact the Paulson was shorting the CDO.
According to ACA, Paulson agreed to play the role of an "equity investor" while actually betting against Abacus. A Goldman executive told ACA that Paulson's interest in Abacus was "100% equity," according to a transcript of a telephone call.
But in yesterday's filing, Paulson sought to distance itself from Goldman and denied that it had anything to do with how Abacus was "structured, marketed or sold to investors," and that there is no evidence Paulson conspired with Goldman to hide its shorting.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…