John Paulson Goes On The Defensive, Confronts Goldman-SEC Fallout

Wall Street Journal:

John Paulson hasn't been accused of any wrongdoing. But the hedge-fund billionaire has gone on the offensive to reassure investors that his huge firm will emerge unscathed from a case that has drawn him into a political and legal vortex.

Read the whole story: Wall Street Journal

Comments

[PhilipTaylor]

01:56 AM on 04/24/2010

G0LDMAN DOES NOT MAKE DEALS THAT LOSE MONEY! At most 0.5% of time.

FAKE ACCOUNTING AND HIDDEN FEES FEED G0LDMAN! Like what the FBI found with JPM’s deals where Derivative FEES exceeded the value of the underlying securities.

The Derivatives are a Hidden Fee generated in every Derivatives Deal.

But G0LDMAN maintains lost $90 million on the Paulson on the above BOARD part of the deal.

Goldman wrote $1 billion and transfer $910 million of exposure to IKB bank and ACA Management to argue a loss of $90 million.

But $90 million instead of $1 billion is actually a gain of $910 million. Paulson paid $15 million to Goldman to make his money on the SHORTING of Junk G0LDMAN SOLD to its clients.

Go1dman may have used Fees from the Junk Derivatives sales to buy securities: AAA-rated mortgage bonds and CDOs and perhaps showed a loss on that above board part of the deal.

In summary G0LDMAN used hidden Fees and slight of hand to WIN BIG on the Paulson Deal!

[BlueSkyPilot]

02:34 PM on 04/23/2010

At the time I did what I did it was not against the law. It may have been wrong but there was nothing preventing me from doing it.

[santai]

10:32 AM on 04/23/2010

..."investors knew that a bearish investor had bet against the deal"


Right...what the investors didn't know is that the "bearish investor" ...Paulson....put the deal together to fail.

[martin2]

12:52 AM on 04/23/2010

Paulson made billions. Where did the money come from?

State of Florida lost $100 Million.

NYC Transit Authority lost $1 Bil.

[PhilipTaylor]

01:13 AM on 04/23/2010

And he is running around FREE as a BUZZARD!

[venusvictrix]

01:25 AM on 04/23/2010

And he's paying off Greenspan for his assistance in rigging the scheme.

Do you really think Paulson was just a genius for figuring out precisely when the market was set to implode?

Greesnpan's no idiot . . . . he's laughing all the way to his secret Grand Cayman bank account.

[atlanta ed]

12:41 PM on 04/22/2010

Any notice John Paulson not charged of any wrongdoing?

[Patriot86]

01:25 PM on 04/22/2010

Yet, he will be...what he did was dre adful.

[martin2]

12:54 AM on 04/23/2010

I hope your are right so far the Crooked Politicians are protecting them.

[venusvictrix]

01:27 AM on 04/23/2010

Who will charge him when he has Alan Greenspan as his wingman?

Lots of big winners are indebted to Alan for his role setting this thing up. Good luck with the wishful thinking.

[pjwrites]

12:25 PM on 04/22/2010

Guilty.

[alibeamish]

12:25 PM on 04/22/2010

Does anyone know these people? or their relatives?
Call his mom, his sister, his son, and ask them what they think

[stargazer13]

12:02 PM on 04/22/2010

Henry Paulson

I here by pronounce you guilty of financial crimes against humanity

seeing that your scams were world wide and millions upon millions were made to suffer some even by taking there own life others taking out there whole family.

I here by sentence you to life with out !

I forfeit by the power vested in me by the Great State of ? your fortune to be invested from here on out to benifit those who,s lives you have harmed !!

be it said this day America and her people will not tolerate financial crimes against humanity !!

any longer from this day froward

[atlanta ed]

12:38 PM on 04/22/2010

Pssssst. John not Henry?

[stargazer13]

12:46 PM on 04/22/2010

how about John AND Henry ?

Thanks

[ron ray]

11:53 AM on 04/22/2010

this guy was just betting with other gamblers on the mortgages of real people. they all deserve any losses they got.

but isn't running a casino illegal in new york? prosecute goldman for that.

[melton244]

11:47 AM on 04/22/2010

Oh Please, Henry Paulson, do keep talking! The more you talk, the more we learn you are a crook.

[Matt12]

11:21 AM on 04/22/2010

Intersting how these guys fortunes grew by the billions, while the rest of America's declined exponentially. Consider the following: Mayor Bloomberg's reported fortune ,as noted by Forbes magazine, increased four times during the Bush years. With the Goldman/ Paulson dynamic in place; is it not fair to ask from more transparency and accountability on what appears to have been (we knew this, but could prove) a chronic practice of insider trading?

[Kevin Atlanta]

10:16 AM on 04/22/2010

Our President, Barack H Obama is focused on "looking ahead; not looking back" and that is commendable for our leader, however:
There comes a time in life when the criminal activity is blatant and that time was passed when Clinton legalized the game, Bush turned a blind eye and Lied, Tortured, Murdered, spent more than all prior administrations combined. This Great Depression is the Republican Cults of Jesus Inc determined to delegitimize this Presidency and we must indict, try and imprison these criminals.
Equality and Justice for all is now at risk.
These Corporate Communists have socialized the loss and privatized the profits. Fraud, Scams and Usery is what they know. Turn pinstripes to prison stripes...

[stargazer13]

11:04 AM on 04/22/2010

Amen to that brother Amen to that .

[henryberry]

09:09 AM on 04/22/2010

What this is is designer financial instruments designed for near certain failure thus enriching members of the exclusive, secretive club.

[waynesmyer]

07:51 AM on 04/22/2010

The DoJ must begin investigating what is an obvious criminal conspiracy by Goldman-Sachs, Paulson, Lehman Bros and dozens of other Wall Street"Money-Changers" ! The "RICO" statues were designed to prosecute just such criminal activity! Rep. Marcy Kaptur,D-Ohio has asked the DoJ to investIgate, but she needs more requests to assure that the DoJ doesn't chicken out! CALL YOUR CONGRESS PERSON AND SENATOR AND DEMAND ACTION ON THIS! is wall street too big to jail? Federal crimes under "RICO" should require "Hard Time at Leavenworth" not 6 months at a country-club prison. The middle managers would turn state's evidence and rat out their arrogant bosses if they faced hard time! but as long as they get their billion dollar Bonus-Bribes and do not face a credible threat from DoJ, it's "business as usual" Right?
CALL YOUR CONGRESS & SENATOR NOW!

[nixrox04]

07:30 AM on 04/22/2010

Hey, this is America. The squids on Wall Street can make billions from an economy they gamed and wrecked, all without even a slap on the wrist AND spend millions to lobby against any financial reform.
These are the people the GOP met with to plan a fight against reform.