Items Tagged with 'Paulson & Co.'


  • ACA Financial sues Goldman Sachs for CDO fraud

    Bond insurer ACA Financial Guaranty filed suit Thursday against Goldman Sachs. The suit alleges fraud and seeks $30 million in compensatory and $90 million in punitive damages stemming from the role the investment bank played in the marketing of the synthetic collateralized debt obligation named ABACUS. Goldman Sachs developed ABACUS and sold it to investors on behalf of its hedge fund client Paulson & Co. in 2007.
    Read More
  • Opinion: Reflections on a Bailout

    As Congressional leaders debate the merits of a historic bailout proposal being pushed by the Bush administration, and Democrats look to tack their own social agenda to the back end of the proposal – free homes for everybody! – perhaps it’s time for all of us to admit something: this is a complex mess.
    Read More
  • Wall Street Execs Weigh in on Securitization Accounting

    In plain English, much of the securitization model that has fueled the modern mortgage market is tied to what's known as a Qualifying Special Purpose Entity -- or QSPE for short, and often called "the Q" in industry slang. QPSEs receive off-balance sheet treatment, or "sale accounting" treatment, that has largely enabled much of the growth in modern secondary markets.
    Read More
  • Bear Stearns At Center Of New Subprime Firestorm

    Reuters reported today on a Wall Street Journal story that said hedge fund investors are up in arms over moves made at Bear Stearns, which critics say are evidence that the Wall Street giant is trying to manipulate a large part of the secondary market for residential mortgages. A few excerpts would seem to summarize the issue:
    Read More