John Paulson, Subprime God, Flees Muddy Waters: William Pesek
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June 22 (Bloomberg) -- Suddenly finance god John Paulsonisn’t looking so omniscient. The New York-based hedge-fundmanager was the star of the 2008 subprime crisis, capitalizingon Wall Street’s misrepresentations to the tune of $15 billionbetting against U.S. mortgages. Now, fraudsters may have takenhim in.
That is, if a June 2 report by Muddy Waters LLC is correctand Sino-Forest Corp. lied about its finances. I don’t know, andneither do investors such as Paulson, the biggest shareholder inthe Canadian-listed, Chinese timberland owner. Paulson & Co.said this week that it sold all its stock, which has plungedmore than 90 percent in the past few weeks.