Robert Kuzahmi – head of the S.E.C.’s Enforcement Division just said from a conference in New Orleans that Paulson & Co. was NOT involved in the disclosure violations he has alleged Goldman Sachs engaged in.

NEW YORK, April 16 /PRNewswire/ – Paulson & Co. Inc. has the following statement in response to the SEC’s complaint against Goldman Sachs & Co. announced today:

As the SEC said at its press conference, Paulson is not the subject of this complaint, made no misrepresentations and is not the subject of any charges.

While Paulson purchased credit protection from Goldman Sachs on securities issued under the ABACUS ABS CDO program, we were not involved in the marketing of any ABACUS products to any third parties.

ACA as collateral manager had sole authority over the selection of all collateral in the CDO, securities of which were subsequently rated AAA by both S&P andMoody’s.

Paulson did not sponsor or initiate Goldman‘s ABACUS program, which involved at least 20 transactions other than that described in the SEC’s complaint.

SOURCE Paulson & Co. Inc.

Comments (20)

  1. Posted by Anonymous | April 16, 2010 at 2:32 PM

    lmao@cramer

  2. Posted by Anonymous | April 16, 2010 at 2:33 PM

    ahahaha who was that guy who just destroyed cramer…best cnbc segment ever (admittedly a low bar to leap)

  3. Posted by Anonymous | April 16, 2010 at 2:36 PM

    Dis guy, again.

  4. Posted by Anonymous | April 16, 2010 at 2:38 PM

    Paulson vomits on SEC accusations

  5. Posted by Anonymous | April 16, 2010 at 2:41 PM

    paulson will pee in your food

  6. Posted by Investorcluzo | April 16, 2010 at 2:41 PM

    I think the SEC should have saved time and money by having the lawyers take a few chapters out of paulson’s book and filed that as the complaint instead…seriously, it’s all right there for everyone to see.

  7. Posted by Anonymous | April 16, 2010 at 2:41 PM

    Paulson just wiped off Ashley Dupre’s face after their afternoon “meeting” with these SEC filings

    -Seattle > NY

  8. Posted by Anonymous | April 16, 2010 at 2:41 PM

    With Pellegrini involved, why is this news? He wouldn’t dare testify against the man who made him filthy rich.

  9. Posted by NakedShort | April 16, 2010 at 2:42 PM

    NO I WILL NOT EAT CAT POOP!

  10. Posted by Anonymous | April 16, 2010 at 3:01 PM

    Paulson and Co. were not involved…just like I wasn’t involved with your mother last night.

  11. Posted by TGFD | April 16, 2010 at 3:30 PM

    From Dow Jones NewsWires…

    Two Goldman CLOs (Collateralized Loan Obligations…catchy, isn’t it) that were “in the works” today for a planned Monday release, are apparently “hitting the skids” and their future is now uncertain.

    Like CDOs, “CLOs work as a way for investors to take lower-rated debt off their own balance sheets and place it in a top-rated investment vehicle.”

    According to Goldman, “CLOs are different from CDOs because CLOs are made from corporate loans, not from (shitty) subprime mortgages.”

    “They’re much better” claimed the Goldman source. “Tailored for the pension-fund market.” The source wouldn’t elaborate further because of recent CDO fraud charges against Goldman.

    ——————————————————-

    In today’s environment, TGFD wonders how lower-rated debt can still somehow manage to become a top-rated investment vehicle.

    BTW, that guy Paulson is a thief and belongs in jail, anyway.

    The Guy from Delaware

  12. Posted by guessed | April 16, 2010 at 3:37 PM

    Thank God TGFD is here, think of all the money America will save without those pesky “trials.” All we need is for him to select a newswire of his liking and make a 5 second judgment. WHY DO WE WASTE MONEY ON JUDGES, JURIES AND PROSECUTORS?

  13. Posted by volatilitysmile | April 16, 2010 at 3:51 PM

    @9 – cat food is safer and better tasting than shellfish.

  14. Posted by Anonymous | April 16, 2010 at 4:15 PM

    Paulson is F***ed. Institutional clients will need to pull their money.

  15. Posted by TGFD | April 16, 2010 at 4:55 PM

    “While Paulson purchased credit protection from Goldman Sachs on securities issued under the ABACUS ABS CDO program, we were not involved in the marketing of any ABACUS products to any third parties.”

    Yeah, Paulson. You didn’t market the things to anybody directly, but you helped design and build them, you knew WTF was in them, you helped get AAA ratings for them, and you knew who owned them. You also knew they were turds, and even though you didn’t own any, you bought credit protection on them, so when the f*cking things blew-up in the faces of the poor bastards who owned them, you’d be sure to make a lot of money.

    You have a face that says, “I’m one tuff, smart, rich bastard, and nobody better not f*uck with Paulson.”

    TGFD hopes for the day when some pissed-off investor does a number on you with a Louisville Slugger. That’s the only way he’ll get justice.

    The Guy from Delaware

  16. Posted by Anonymous | April 16, 2010 at 5:01 PM

    TGFD,

    feel free to meet me outside the exchange, you’ve gotta get through my 19 armed securtiy guards first.

    -Tony Montana aka Paulson

  17. Posted by Finnegan | April 16, 2010 at 5:53 PM

    TGFD standing up for counterparties like banks and institutional investors, who obviously must be what? Stupid?

    You can walk into McDonald’s and convince yourself you are buying good food, or you could walk into The French Laundry and convince yourself you are buying quality. One should think a chef could tell the difference.

    In the case of all the parties involved, they were all chefs, but some were just out to lunch. Don’t be Essau.

  18. Posted by TGFD | April 16, 2010 at 8:58 PM

    Finnegan@#17…

    What might you be talking about? McDonald’s does have good food.

    Regarding Paulson, you should know by now that a large number of investor decisions are based on trust. That is…trust in the financial goon or goons an investor has been dealing with for quite some time. Interpersonal relationships, be they business or personal, are all based on trust. If you don’t agree, perhaps you can think of an exception to that statement.

    So-called ‘sophisticated’ investors get duped by unscrupulous turds like Paulson and Goldman more often than they would like. They are “out to lunch”, and yes, they’re probably “stupid” too for trusting the bastard, but those investors shouldn’t be defrauded either.

    A ball-bat beating of Paulson is something I’d really like to see. Justice would be served, and a lasting impression would remain as a deterrant. While we’re waiting for that to happen though, a good alternative would be for ‘sophisticated’ investors to read #14′s post…”Paulson is F***ed. Institutional clients will need to pull their money.” TGFD would like to see that happen too.

    The Guy from Delaware

    BTW, not being Jewish, TGFD had to look-up the story of Essau. “Jacob took advantage of his starving brother and snatched Essau’s birthright.” Is Paulson Jewish? Are you?

  19. Posted by Finnegan | April 17, 2010 at 1:35 PM

    TGFD… good comments, and certainly people should not be defrauded.

    (Not Jewish,…just had tons of “Bible lesson” time as a youth under the instruction of an insane parent.)

    I guess I am totally sympathetic to Paulson as I don’t think he did anything wrong, legally or morally.

    As for Goldman, I don’t think they did anything illegal, or anything that others were not trying to replicate. Goldman might have more more responsibility to clients, but I think nearly everyone neglected their “moral duty” over the past five years: bankers, government officials, individuals, mortgage brokers, Democrats, Republicans, the average Joe…. everyone.

    So I always have a hard time singling people out for sole scorn or retribution. Change the law, fix the laws, but don’t do show trials to appease the masses or save face.

    Then too, I am very much a proponent of quickly fixing regulations, but largely laying off the banks and keeping them at high profitability, so that they can keep against their world counterparts, but primarily so that they can have the funds necessary to begin loaning again to businesses. You hold your nose, bail them, and move on, because our banks separate us from being Tanzania or Haiti.

    But I hear what you are saying.

  20. Posted by Finnegan | April 17, 2010 at 1:41 PM

    Oh, and the Essau reference was that we all have to do due diligence in this world. There are people who will steal or swindle us out of what we have in every area of life, and we just have to have our eyes open. Man’s human nature (greed, fear, keeping up with the Jone’s who have a new no-doc loan arrangement) leads us into excess, and without the right type of regulation and checks, we get the chaos that we got. None of us in this day and age can afford to be Essau when there is no proper God (minimally appropriate regulation that addresses government liability for backstopping speculation).

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