Chillin' out till it needs to be funded
Paulson & Co have been in the loop with SEC since February on their inquiries into the ABACUS Caucus..As Goldman insiders have now pushed to the press, these OTC products are more or less always run by a caucus of buyers and a caucus of sellers and the buyers do not appreciate being known to the sellers or vice versa, hence the driven process around Fab Tourre creations and designs..
Goldman Sachs on the other hand have been on the books with SEC since last July with the first replies on the subject in September. These disclosures were not made because probably the amount including its own loses was a very small fraction of what was going around and thsus a sensitive thing for them to harp on in a negative arket direction..
Paulson & co and market players around have been sitting on GS for even fundamental reasons since January when the scrip reached its peak and the pay fracas took center stage. Assuming that to be the time when the inner circle of Wall Street had an inkling of this coming down, SEC has had time to weigh the consequences, but as it is it seems to be a unitary action by a regulator to get attention at the time they decided to complete findings and report..that is a little bit of a bite because from our standpoint this was also a critical item that needed to be on more tha one time table, including the Fed and the super regulator / Geithner for this year and the next. Is that why this is a free market? I think such shocks are not free or liberating to any one esp when most o the people who knew of these events since 2003 are not doing much talking right now. Not for saving them per se, but to assess the market impact of what is being said, by whom and where we will be ext week on the subject…It’s like shutting LAX when 10 flights are about to land!!
Then there is the irresponsible Fab Tourre who has himself been under pressure probably to sell theese as he is writing a different version in his emails to friends and colleagues. If the CDO market is at the fag end and Paulson and IKB have pressurised them to play the other end of the market then there is a very unsafe market in existence if only one person in the entire industry printed Abacus paper.. ( The simplified sequence of events that New Market Direction on Sub Prime = Paulson, IKB and investor demand pressure and none other is implied or can be true)