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So what are you arguing, exactly? If Paulson had to approve it, and it wouldn't have existed otherwise, how could Goldman possibly represent it as being indepe

by jfager 16y ago

So what are you arguing, exactly? If Paulson had to approve it, and it wouldn't have existed otherwise, how could Goldman possibly represent it as being independently selected by ACA and not be guilty of fraud?

yummyfajitas 16y ago
ACA independently selected the best set of long positions that Paulson was willing to short. That's how almost every synthetic CDO is constructed, and was almost certainly disclosed in the legalese of the contract.
- jfager 16y ago
  But ACA didn't know Paulson was the short. They thought he was going long, because that's what Goldman told them (and part of what the SEC is suing Goldman for). It was Goldman's responsibility to find the shorts, not ACA's.