Wednesday, April 21, 2010

Paolo Pellegrini's Testimony Could Undercut SEC Charge Against Goldman

CNBC's Steve Liesman reports: The SEC has testimony from Paolo Pellegrini, who negotiated the deal with ACA, that could contradict SEC's claims against Goldman Sachs. Paolo Pellegrini, ex right hand of Paulson, told ACA that he chose the portfolio of CDOs based on the low FICA score and high debt-to-value ratio. His intent to short the portfolio was clear and hard to miss.

Watch Steve Liesman discussing the case

Pellegrini is the Rome-born analyst who helped hedge fund operator John Paulson to make a ton of money on the subprime crash in 2007 and 2008. Pellegrini and his colleagues crunched tons of U.S. mortgage data, concluded that housing prices were due for a collapse, and invested accordingly. Paulson made over $3.5 billion on the trade. Pellegrini, is now investing his personal money via his firm PSQR Capital.
Paulson Protege Pellegrini on Bernanke's Fed: "Sheer Lunacy" Posted by: Peter Carbonara on November 16, 2009

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