Wednesday, 24 August 2016
Last updated 6 hours ago
Mar 26 2014 | 1:34pm ET
Paulson & Co. made billions betting against mortgage-backed securities. Now, it’s hoping to make billions more suing the banks that issued them.
The New York-based hedge fund has acquired a “significant” minority stake in ResCap Liquidating Trust, which took over the claims from subprime mortgage firm Residential Capital. Paulson was a major creditor of ResCap.
Paulson has one of the five seats on the board of the trust, which has filed lawsuits totaling $9 billion. The hedge fund acquired its first stake in the trust by forgiving debt, and the rest in December, buying it from MBIA.