According to CNBC’s Steve Liesman, the SEC has evidence that contradicts its own argument that ACA was mislead on the nature of John Paulson’s intent.
Specifically, in interviewing Paulson lieutenant Paolo Pellegrini, ACA was informed that Paulson intended to go short the CDO.
Not surprisingly, this was left out of the SEC complaint.
The SEC really needs to answer for this.
Assuming the story is true, and it was communicated by someone to ACA that Paulson intended to go short, what it does is confirm a totally alternate storyline: ACA and IKB were gung ho on buying everything in sight, and nothing was ever going to stop that.
And if you missed it last night, read this description of IKB, which seems to have fired a top manager because he wanted to be less aggressive.
We may need to add the SEC to the LOSERS column of our Winners & Losers from the Goldman scandal >
Business Insider Emails & Alerts
Site highlights each day to your inbox.