CRL’s growing scandal
April 17, 2010 | Center for Responsible Lending | Comments (0)Big Government is on the case in a post headlined, “Goldman-Sachs fall from grace”:
John Paulson is an interesting guy: He was one of a handful of hedge-fund managers who bet the mortgage-bond market would decline beginning in late 2006, and made billions from that bet. Here is where the SEC charges get interesting: Goldman allowed Paulson to help create the bond and to put some of the most risky mortgages in the portfolio, or mortgages that were most likely to default and tank the investment.
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Read the whole thing here. John Paulson hasn’t been charged in this affair, but it is interesting that he has such a significant supporting role. As Big Government readers know, Paulson is the largest single donor to the Center for Responsible Lending, a leftist advocacy group that is part of a complicated web of non-profits and private investment funds. A leading executive of CRL is now at the Treasury Department, overseeing the proposed “Consumer Financial Protection Agency.” Paulson is becoming Wall Street’s Zelig, who keeps showing up in very interesting places.
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