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John Paulson's Testimony Before The Financial Crisis Inquiry Commission

John Paulson was one of the very few people who foresaw the financial crisis and actually made billions of dollars profiting from it. Paulson saw the housing bubble as early as 2005. Paulson used a combination of CDOs and CDSs to make his fortune. To read the full story of his short read the best-seller, The Greatest Trade by Gregory Zuckerman. According to Market Folly, "His Credit Opportunities fund launched in 2006 with $150 million aimed to short subprime mortgage backed securities. This fund enjoyed immediate success, causing him to launch the Credit Opportunities II fund. At the end of 2007, the Opportunities fund was up 590% and his Opportunities II fund was up 353%". In 2008, one of Paulson's fund was up 589%! Today, John Paulson runs one of the largest hedge funds in the country, with ~33 billion in assets.

I posted the text and scribd document on Value Walk.

Below I am posting the testimony in scribd format, for best viewing click on full screen mode.

_John Paulson Testimony Before Financial Crisis Inquiry Commission (http://www.valuewalk.com)

About the author:

Jacob Wolinsky
My investment ideas have been inspired by many of value investors including Benjamin Graham, Charles Royce, John Neff, Joel Greenblatt, Peter Lynch, Seth Klarman,Martin Whitman and Bruce Greenwald. .I live with my wife and daughter in Monsey, NY. I can be contacted jacobwolinsky(AT)gmail.com and my blog is www.valuewalk.com

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Rating: 3.5/5 (2 votes)

Comments

hpmst3
Hpmst3 - 3 years ago
I thought that Paulson's FCIC interview was very good. Thanks for transcribing this interview!

The following book gives more information on the subprime lenders. It is painful to read:

The monster : how a gang of predatory lenders and Wall Street bankers fleeced America--and spawned a global crisis / Michael W. Hudson.

Hugh

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