Did John Paulson Receive Preferential Terms From Dealers When Selling Lehman Bonds?

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/05/2011 - 15:30 | 1427455 Tejano
Tejano's picture

Of course he did.

Tue, 07/05/2011 - 15:31 | 1427459 Popo
Popo's picture

Does the Pope wear a funny looking hat?

Tue, 07/05/2011 - 16:27 | 1427615 Oh regional Indian
Oh regional Indian's picture

The best one I've heard "Is the pope the head of the gay mafia?".

Did he? First poster got it right!

I found a brilliant e-book I'll share when I re-find. Eye/mind-popping. Very much on topic with the like of JP, the Other J6P and their inside games.




Tue, 07/05/2011 - 15:31 | 1427463 Piranhanoia
Piranhanoia's picture

The rhetorical question burns. 

Tue, 07/05/2011 - 15:32 | 1427466 Cognitive Dissonance
Cognitive Dissonance's picture

Does a bear get run over on Wall Street?

Tue, 07/05/2011 - 15:34 | 1427478 JW n FL
JW n FL's picture



Just because You Constitutional Lovers / Terrorists dont get the same rigged terms while the SEC looks the other way does Not! mean he is Favored.. it just means that You Constitutional Loving Terrorists are being undermined Financially for the Safety of America the Great Police State!


Losers always Bitch like little girls! Now go buy some Gold and Complain about how your rights are being stepped on buy the winners some more!

Tue, 07/05/2011 - 16:19 | 1427595 JW n FL
JW n FL's picture



Despite a run of unfavorable test results, Harbinger Capital Partners' wireless venture was able to raise hundreds of millions more as it struggles to demonstrate its system can work without disrupting global positioning systems.


The Federal Communications Commission has required that LightSquared cover 260 million people by 2016, targets the company has pledged to easily beat.




High speed spying for ALL! Americans!! coming to a hand held device in your pocket very soon!

Tue, 07/05/2011 - 15:39 | 1427490 SDRII
SDRII's picture

IPO allocation logs tell the same story - rinse wash repeat

Tue, 07/05/2011 - 16:31 | 1427632 Oh regional Indian
Oh regional Indian's picture

I found Accredited investor the cruelest cut. No accredited, what was the term... you had to have a minimum of a mill $ outside primary home.
What a scam. Some trust fund dumbass could get into all those Sillycon Valley IPO's but not us Non-accredited or whatever investors.

i did lose money on Webvan though! ;-)

Remember Webvan anyone? Remember what Apple was trading at those days?

Tue, 07/05/2011 - 15:39 | 1427491 Gringo Viejo
Gringo Viejo's picture

Is Nancy Grace an illegal immigrant's idea of Cleopatra?

Tue, 07/05/2011 - 15:44 | 1427493 baby_BLYTHE
baby_BLYTHE's picture

Does the FED mark-to-market?

Tue, 07/05/2011 - 15:40 | 1427498 YesWeKahn
YesWeKahn's picture

How about a good deal on a block trade? Does that ever happen?

Tue, 07/05/2011 - 15:41 | 1427500 Robslob
Robslob's picture

And the defense rests it's case

Tue, 07/05/2011 - 15:42 | 1427503 Bay of Pigs
Bay of Pigs's picture

I assume he's personal friends with Mary Shapiro.

I wonder if she calls him Big John?

Tue, 07/05/2011 - 15:42 | 1427504 Deepskyy
Deepskyy's picture

Do bears poop on the Pope?


Tue, 07/05/2011 - 15:43 | 1427505 MrBinkeyWhat
MrBinkeyWhat's picture

WOW! Do you really mean that the banksters get preferential treatment? This is SHOCKING, just SHOCKING!

I suggest spending a little time with WilliamBonzai7, just to give things perspective. Artists...

Tue, 07/05/2011 - 15:46 | 1427514 MrBinkeyWhat
MrBinkeyWhat's picture

Apparently I did not spend enough time with Monty Python today. Maybe some vodka instead. Sigh..."What a world...what a world" *Red Witch from Wizard of Oz"

Tue, 07/05/2011 - 15:49 | 1427521 SheepDog-One
SheepDog-One's picture

Try triple tequillas, pretty good for mania market closings.

Tue, 07/05/2011 - 15:55 | 1427536 MrBinkeyWhat
MrBinkeyWhat's picture

SDO... There is a personal tale of woe surrounding tequilla. Otherwise...pretty fukking great idea!


Tue, 07/05/2011 - 16:01 | 1427550 Cognitive Dissonance
Cognitive Dissonance's picture

I had a real close encounter with some cherry brandy when I was a young dumb ass. Now that I'm an old dumb ass I stay away from it entirely.

Who said old dumb asses can't learn new tricks?

Tue, 07/05/2011 - 15:43 | 1427507 Gubbmint Cheese
Gubbmint Cheese's picture

He crossed the LEH position into his personal 401(k)...


Tue, 07/05/2011 - 15:47 | 1427516 Dr. Engali
Dr. Engali's picture

Volume pricing.

Tue, 07/05/2011 - 15:58 | 1427518 SheepDog-One
SheepDog-One's picture

'I feel SHOCKED!' Pepper Brooks, Dodgeball

Tue, 07/05/2011 - 15:53 | 1427526 besodemuerte
besodemuerte's picture

Does Timmy ignore his taxes?

Tue, 07/05/2011 - 15:54 | 1427529 vast-dom
vast-dom's picture

Hey Tyler change the title of this post to:


"HOW J. Paulson Received Pref Treatment [...]"


Okay? Don't wimp out on me now! Or I'll burn a vag into your other hand!

Tue, 07/05/2011 - 15:57 | 1427544 KidDynamite
KidDynamite's picture

do you have a typo in this post, Tyler?

"For example a market represented as 20x22 would mean the dealer can buy a bond at 22 and sell it at 20"

buy and sell should be reversed - or "dealer" should be changed to "customer"

more importantly, what did you mean when you wrote:

"So Paulson proceeded to sell, and while on(e) would expect that the price he should get based on the Taconic clearing price would be well north of 20"

If Taconic bought (small size) at slightly higher than 20, then why would you expect Paulson to be able to sell significantly larger size at a price well north of 20?  It should be well south of 20, no?  He's a)selling and b) selling much larger size than Taconic was buying

Tue, 07/05/2011 - 16:01 | 1427551 Tyler Durden
Tyler Durden's picture

You are correct. Bizarro up-down/left-rightness equivalency demonstrated.

Tue, 07/05/2011 - 16:26 | 1427616 agrotera
agrotera's picture

...there is such a long list of things that COULD be investigated if we didn't have regulators that appear to be CAPTURED (bought off, corrupted) by the toobigtofail privetly owned Federal Reserve cartel......

...see failure to deliver stock certificates 3 days prior to Bear Stearn and Lehman's demise on www.deepcapture.com when you view  Deep Capture the Movie".

...how about Lehman getting scrapped and sold for cheap to Barclay's yet MER got 0.66% of a BAC share for their bankrupt company.

....Paulson claims to the public that we can't socialize the banks, yet it is OK to gut the country to keep bankrupt entities alive vs. have a short term, 3-5 year treasury facility to unwind the corrupted defunct entities?  And we are to believe the TRILLIONS paid out to keep  these entities alive is for the good of the country?  Paulson's dictate puts our country in jeopardy since debt burden weakens a country, and everyone in the world knows that keeping these banks alive at the US taxpayers expense is a scam, and as such, the value of our country and it's currency (integrity) have been going down down down.

Tue, 07/05/2011 - 16:38 | 1427654 long-shorty
long-shorty's picture

Not directly pertinent here, but THESE DAMN THINGS (bonds) SHOULD TRADE ON EXCHANGES!!!

(But then bond traders wouldn't make obscene spreads.)

Tue, 07/05/2011 - 20:41 | 1428226 unununium
unununium's picture

How many GS insiders have accounts at Paulson?

As part of the Abacus settlement, did Paulson have to disclose his client list, so regulators could see who ultimately profited?  Surely he did, right???

Tue, 07/05/2011 - 21:18 | 1428309 jmoney
jmoney's picture

Interesting data...welcome to the distressed market. Illiquid with massive spreads. It is certainly good to know your dealers. Nothing illegal here, but I'd be pissed if I was Taconic or the other funds that (only?)saw/took the other sides of these markets.

Bottom line, it is still good to be a distressed trader/salesperson at a broker/dealer...no wonder this stuff hasn't moved to an electronic arena faster.

Tue, 07/05/2011 - 22:00 | 1428415 Rick64
Rick64's picture

 meaning somehow JP found a broker who is either willing to take a big loss,

 I would put the odds with one of the TBTFs unloading the crap and soaking it up, since they knew they would be bailed out.

Do NOT follow this link or you will be banned from the site!