Monday, July 4, 2011

Paulson Enjoys $550 Million Lehman Boost

Paulson & Co, the hedge fund that made billions from betting on a collapse in mortgage-backed securities during the financial crisis, has made more than $550 million from a recovery in the value of bonds it bought in failed investment bank Lehman Brothers, according to CNBC reports

The world’s third-largest hedge fund has made a profit of $554 million before legal fees, on more than 2,000 trades in Lehman bonds that started the day the investment bank filed for bankruptcy in 2008, according to an analysis of court documents by the Financial Times.

The profit will be realized by a settlement between warring creditors to the largest corporate failure in history, a deal partly driven by hard bargaining by Paulson & Co and allies.

It is a much-needed boost for the $38 billion hedge fund, headed by John Paulson, that has struggled with poor performance and high-profile blunders in recent months.

Find out more at http://www.cnbc.com/id/43635020

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