Thursday, June 7, 2007

Mortgage swap row spotlights potential conflicts

(Reuters) - Hedge fund executive John Paulson of Paulson & Co., in a
letter to the International Swaps and Derivatives Association
on April 17, accused investment bank Bear Stearns Cos.
of appearing to support the manipulation of credit
default swap prices by protection sellers.




Paulson's statement was provoked by language Bear Steans
had suggested for CDS documentation on April 3, in which the
bank stated that sellers of protection may buy certain
delinquent loans as part of their role as a mortgage servicer.


Read more at Reuters.com Bonds News

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