[lbo-talk] Why was Paulson Co. not charged along with Goldman Sachs?

Shane Mage shmage at pipeline.com
Sat Apr 17 20:02:22 PDT 2010


On Apr 17, 2010, at 10:19 PM, ken hanly wrote:


> 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?

Its a civil, not criminal procedure, so conspiracy is not an issue. Paulson didn't directly deceive anyone, so no civil liability. But they obviously are co-conspirators in criminal law, if the DOJ can be forced to prosecute.

Shane Mage

"Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64



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