Fund Turned To Goldman To Short Housing Market, Jurors Told

Law360, New York (July 16, 2013, 8:34 PM EDT) -- Paulson & Co. had approached Goldman Sachs Group Inc. as part of a calculated strategy to bet against the U.S. housing market, a former executive at the hedge fund testified on the second day of the fraud trial against ex-Goldman trader Fabrice Tourre.

Paolo Pellegrini, a onetime managing director at Paulson, told jurors that the hedge fund approached Goldman in late 2006 and early 2007 with a plan to put together a product that would let it profit if the housing market experienced a downturn....
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