John Paulson is a more aggressive risk-taker than other hedge fund managers, a Bank of America executive told clients on a conference call yesterday, Bloomberg reports. Mr. Paulson answered questions from BofA’s wealth management clients after Citigroup’s private banking unit redeemed $410 million from Paulson funds last week.
Ray Dalio isn’t making friends in Stamford, Conn., says The New York Post, reporting that the Bridgewater founder ticked off locals with the surprise demolition of a boatyard to make way for the massive hedge fund’s new waterfront headquarters.
Bill Ackman’s position in JCPenney has cost his hedge fund, Pershing Square, $900 million this year as shares fell 18 percent.
The government is investigating possible mortgage fraud at Residential Capital, the mortgage-lending unit of government-owned Ally Financial, Reuters reports. The Securities and Exchange Commission disclosed in court filings Monday that it had issued a formal order of investigation in February to probe ResCap’s mortgage-bundling and underwriting practices. Ally, which is 74 percent-owned by the Treasury after a series of bailouts during the financial crisis, placed ResCap into bankruptcy proceedings in an effort to shed bad assets ahead of a potential IPO.
Barclays may face a criminal investigation into whether it properly disclosed details of a deal to raise capital with Qatar sovereign wealth funds during the financial crisis.
Morgan Stanley and Citigroup will allow more time for the appraisal of their joint-venture brokerage, Morgan Stanley Smith Barney. Investment bank Perella Weinberg was set to put a value on the JV this week, but will delay the decision until Sept. 10.
Prosecutors revised the indictment of Level Global Investors co-founder Anthony Chiasson and ex-Diamondback Capital Management portfolio manager Todd Newman, adding new counts of securities fraud pertaining to alleged insider trading in Nvidia Corp.
The Occupy movement isn’t over “until the last person calls it quits and goes home, wherever home is,” an organizer tells Bloomberg as the movement’s Sept. 17 day of action approaches. This is proving to be the case in Hong Kong, where 10 or so protesters continue to hold out in HSBC headquarters.
Can Spain avoid Greece’s vicious cycle?