Billionaire hedge fund manager John Paulson, perpetrator of the Greatest Trade Ever, has sold off sizable chunks of his positions in Bank of America, Citigroup and Wells Fargo, while dropping his position in Goldman Sachs altogether.
The move underscores a third-quarter that was somewhat humbling for the big banks. A foreclosure scandal, ramped-up capital requirements, falling revenue and mortgage-putback worries have prompted increased investor skepticism about the sector. Paulson’s selloff of big-bank shares isn’t totally surprising, given his tempered remarks about Bank of America in late October.
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