Goldman criticised over CDO after SEC lawsuit


A former senior official at ACA Capital Management, the portfolio selection agent of the CDO, says the firm would not have been involved in the transaction if it knew the deal's sponsor – the New York-based hedge fund Paulson & Co, which also had a say in the selection of the underlying assets – was planning to short the residential mortgage-backed securities (RMBS) contained in the portfolio.

"If we knew somebody was specifically trying to direct us to bonds they thought were weak, then we woul

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