Paulson & Co, a hedge fund that made billions of dollars betting against subprime mortgages, has received a request for information from the Securities and Exchange Commission.
The firm run by John Paulson (pictured) profited from the subprime crisis, to the tune of $15bn for his firm and his investors, by placing bets against securities known as collateralized debt obligations, or CDOs, which promised investors returns from pools of mortgages extended to borrowers with tarnished credit histories.
According to the FT, Paulson & Co is not believed to be a target of any investigation but the information requested is apparently in connection with a complex securities investigation at the heart of the financial crisis.
