If true of course:
The Wall Street bank, which has previously denied working against its own clients, was yesterday rocked by allegations that it hood-winked investors by selling them a toxic package of mortgages in the interests of another client, the hedge fund Paulson & Co.
From the brief story so far it doesn\’t look like the basic thing they were doing was fraud. They set up a synthetic CDO and sold it on to people.
The allegation seems to be that they way they sold it to people, what they told them when they sold it, was fraudulent.
Be interesting to see what happens next….