Thieving rich get richer – Treasury Dept. Gave Insider Info to Hedge Funds

November 29, 2011 06:43

Former Goldman Sachs CEO Paulson as Treas. Sec. gave a heads up to five Goldman Sachs execs and others in a private meeting giving them the opportunity to profit from government actions in the financial crisis. Why aren’t people going to jail? – Bloomberg has the story

By Richard Teitelbaum – Nov 29, 2011 at


Over sandwiches and pasta salad, he delivered that information to a group of men capable of profiting from any disclosure.

Around the conference room table were a dozen or so hedge- fund managers and other Wall Street executives — at least five of them alumni of Goldman Sachs Group Inc. (GS), of which Paulson was chief executive officer and chairman from 1999 to 2006. In addition to Eton Park founder Eric Mindich, they included such boldface names as Lone Pine Capital LLC founder Stephen Mandel, Dinakar Singh of TPG-Axon Capital Management LP and Daniel Och of Och-Ziff Capital Management Group LLC.

The fund manager says he was shocked that Paulson would furnish such specific information — to his mind, leaving little doubt that the Treasury Department would carry out the plan. The managers attending the meeting were thus given a choice opportunity to trade on that information.


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