From: ken hanly <[email protected]>
It was Paulson and Co. the hedge fund that earned billions from the collapse of the CDO. Paulson also picked securities for the CDO for the third party that they knew would bomb and then sold the CDO short. You mean to say that is kosher? cheers, ken hanly ^^^^^^^^ CB: I don't know about kosher, but the SEC is claiming that it is "uncivil". As far as "charged" , it is not a criminal charge but a civil lawsuit. (The US law has a binary opposition civil/criminal law; sort of like Levi-Straussian structuralism's binary oppositions) ^^^^^ http://roomfordebate.blogs.nytimes.com/ "The Securities and Exchange Commission filed a civil lawsuit against Goldman Sachs for securities fraud on Friday, charging the bank with creating and selling mortgage-backed securities that were intended to fail. According to the complaint, Goldman let John Paulson, a prominent hedge fund manager, select mortgage bonds that he wanted to bet against because they were most likely to lose value and packaged those bonds into the “Abacus” investments, which were sold to investors like foreign banks and pension funds. As those securities plunged in value, the Paulson hedge fund made money on the negative bets, while the Goldman clients who bought the investments lost billions of dollars. Is this chain of events surprising? The S.E.C. is suing Goldman Sachs, but could regulation or monitoring of these financial instruments have prevented such losses? What kind of regulatory structure would need to be put in place? " Read more… _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
