Ponce
19th April 2010, 01:25 PM
04/19/2010 14:35 -0500
AIG American International Group CDO Collateralized Debt Obligations Fisher Guest Post Jim Bianco Paolo Pellegrini Rating Agencies Rating Agency ratings Steve Liesman
It appears that Steve Liesman of CNBC has access to deposition or other facts in the SEC case. Perhaps he has been talking to Paolo Pellegrini, Paulson’s former head trader who is believed to be a key witness for the SEC.
We have found no one else that is reporting on case specifics beyond what was in the SEC complaint. Liesman reports that the Abacus 2007-AC1 deal was somewhat unique in that it was Paulson’s only CDO that used a neutral third party manager to select collateral (ACA management) or “bespoke†deal.
Pauslon did other CDO deals where they picked the collateral directly and it was disclosed as such. What is not clear is if Paulson’s economic interest in those deals failing was also properly disclosed.
The implication is if Goldman loses this case it will not lead to a precedent that will spread to many other CDOs.
Like I wrote before........the domino affect.........Ponce
AIG American International Group CDO Collateralized Debt Obligations Fisher Guest Post Jim Bianco Paolo Pellegrini Rating Agencies Rating Agency ratings Steve Liesman
It appears that Steve Liesman of CNBC has access to deposition or other facts in the SEC case. Perhaps he has been talking to Paolo Pellegrini, Paulson’s former head trader who is believed to be a key witness for the SEC.
We have found no one else that is reporting on case specifics beyond what was in the SEC complaint. Liesman reports that the Abacus 2007-AC1 deal was somewhat unique in that it was Paulson’s only CDO that used a neutral third party manager to select collateral (ACA management) or “bespoke†deal.
Pauslon did other CDO deals where they picked the collateral directly and it was disclosed as such. What is not clear is if Paulson’s economic interest in those deals failing was also properly disclosed.
The implication is if Goldman loses this case it will not lead to a precedent that will spread to many other CDOs.
Like I wrote before........the domino affect.........Ponce