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Paulson May Make as Much as $726 Mln on Lehman Bonds, WSJ Says

Paulson & Co., a U.S. hedge fund firm run by John Paulson, may make a profit of $350 million to $726 million on debt of Lehman Brothers Holdings Inc. that it bought at greatly discounted prices during the past two and a half years, the Wall Street Journal reported.

The newspaper said those figures are based on plans being looked at by a federal bankruptcy court in New York and its own analysis of investment disclosures related to the case.

Paulson’s fund bought more than $7 billion worth of Lehman bonds at an average price of 13 cents on the dollar, the Journal said.

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