As ACA Sues Goldman Over Abacus, A Question Emerges: Did The SEC Hide A Damning Piece Of The Prosection Against Goldman?

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That ACA is suing Goldman over Abacus, as Charlie Gasparino first reported, is not surprising. After all, everyone wants a piece of free lunch, especially when there is a case in the docket. What is however surprising, is that according to plaintiff lawyer Marc Kasowitz, ACA has ‘documents that show Goldman Sachs told ACA Paulson was long on the ABACUS investment.’ If this is indeed the case, this becomes a clear case of fraud, pure and simple, no question about it, with clear intent to misinform, and is not even remotely defensible by Lloyd Blankfein's statement to Carl "Shitty Deal" Levin, that Goldman was merely making markets. If this piece of paper does exist, there is clear intent to misrepresent, and what is stunning is that this never was made clear during the SEC trial. Since we can assume that the SEC had access to this information, and had this been exposed, it would have made settlement virtually impossible as it would have clearly but Goldman in the position of having broken the law, we can merely validate once again, that the SEC is nothing short of Goldman's latest public-private acquisition a la Facebook.

From Fox Business Network:

On the lawsuit filed by ACA Capital against Goldman Sachs:

“FOX Business Network has learned on of the investors, ACA Capital is suing Goldman Sachs for 120 million dollars for in compensatory and other damages. The lawsuit does follow the SEC case pretty closely. It says ACA had no idea that John Paulson, the big hedge fund guy, that he was actually putting together this deal and shorting this deal. Where it goes further than the SEC case is they have emails where Goldman Sachs is clearly in the loop with ACA and ACA is clearly under the belief that Paulson is long the portfolio, not short and what these emails show is that Goldman did not correct ACA Capital in this belief.”
On ACA Capital’s allegations against Goldman Sachs:

“I spoke with Marc Kasowitz the attorney for ACA Capital. He said ‘we have documents that show Goldman Sachs told ACA Paulson was long on the ABACUS investment.’ That takes it a step further that there are documents where Goldman explicitly is telling ACA Capital that Paulson is long when in fact we all know that he is short.”