4 Financial Stock Stories Not To Be Dismissed
Goldman Sachs Group (NYSE:GS): Closing price $147.86
John Paulson’s hedge fund must now defend against allegations that his firm conspired with Goldman Sachs so as to fraudulently coax a bond insurer to guarantee payments on risky debt, according to court papers. On Thursday, the bond insurer ACA Financial brought an amended complaint which named Paulson & Co and its hedge fund Paulson Credit Opportunities Master II as defendants in a $120 million suit that it lodged against Goldman in 2011. The crux of the suit focuses on a collateralized debt obligation called Abacus, which ACA said was created to fail so that Paulson could reap “huge profits” and Goldman “huge fees.”
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