John Paulson: Our Role in Goldman CDO Was ‘Appropriate’

Paulson & Co., the hedge fund that raked in $15 billion betting on the collapse of the housing market in 2007, said its role in helping to design a residential mortgage-linked synthetic CDO, called Abacus 2007-AC, sold by Goldman Sachs (GS) was “appropriate and conducted in good faith,” according to a letter sent to investors.

Bloomberg : “We have always been forthright in expressing our opinions, and we never misrepresented our positions,” John Paulson, the firm’s founder, wrote in the letter dated April 20. “All our dealings were through arms-length transactions with experienced counterparties who had opposing views based on all available information at the time.”