Posted on 04/21/2010 6:51:50 AM PDT by WINGED PEGASUS
The Securities and Exchange Commission has been supplied testimony which appears to contradict the Obama Administrations case against Goldman Sachs according to preliminary reports by CNBC.
CNBC Reports that government documents confirm that Paulson & Co. official Paolo Pellegrini told ACA Capital Management official, Laura Schwartz that the company(Paulson)was interested in taking a "SHORT POSITION" in Abacus, confirming Paulson and Company's contention that they were on record as betting a short position on the deal from the start. If the documentation from Paulson proves to be accurate, it would negate government claims that Paulson was attempting to defraud investors by representing a positive outlook on the deal.
The issue wasn’t Paulson representing a positive view, but Goldman representing a positive view.
The governments fraud charge against Goldman stems from their alledged misrepresentation of a security created by Paulson & Co. The government contends that Goldman was paid fifteen million by Paulson to create the CDO security and then in collusion with the company covered up the fact that Paulson bet against the security. The Paulson letter being released today indicates that Paulson made its sell short position clear and that Goldman passed the letter on to investors PRIOR to their participation. This would indicate that the investors were betting against the Paulson position with Goldman providing full disclosure of the short sell status of the creator(Paulson)of the security.
Please note, that my position on this as previously stated in the “Obama’s Goldman Problem” thread (below)is still the same; that Goldman is working with the white house, agreeing to be set up as a straw man, taking it on the chin for a small fine in order that Obama may go after the real Wall Street banks and companies which he wants to either take over or outright destroy.
Yes, I agree. Especially the part about Obama colluding with GS.
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