November 30, 2007
Dumb Borrowers to Get “Help” from Hedge Fund Honcho
Paulson Housing Bets Make $2.7 Billion
“Paulson earned an estimated $1.14 billion in performance fees for the nine months ended on Sept. 28. Fees on Paulson’s other eight funds bring his total to $2.69 billion.
Paulson … donated $15 million to the Institute for Foreclosure Legal Assistance, a new nonprofit formed that month by the Center for Responsible Lending, a borrowers’ advocacy organization in Durham, North Carolina.
‘Given the success of our funds, we feel it is important to help those who have suffered the most as a result of predatory subprime lending practices,'’ Paulson wrote to investors after the third quarter.’”
He donated around one half of one percent of this year’s profits, I love it. Is that help or good public relations? You can’t save people from themselves.
December 1st, 2007 at 5:12 am
And yet he still rides the bus to work.
And That donation was more than what he paid for his house.
Maybe he’s just a modest, if enormously successful, trader. Not knowing him, I have no idea.
December 1st, 2007 at 9:10 am
CapGain: Right, he takes the bus to work from his $14.7 million house. He’s either an OK guy or a master of public relations… can’t be both.
December 1st, 2007 at 9:15 am
Why not?
December 1st, 2007 at 9:16 am
CapGain: Because I’m a hopelessly naive romantic?
December 1st, 2007 at 12:45 pm
I am sure the benefit of a tax deduction from the donation was never a factor.
December 1st, 2007 at 11:13 pm
“You can’t save people from themselves.”
Exactly.
December 2nd, 2007 at 4:20 am
Having gone to high school in Manhattan, and lived in NYC, it is not unreasonable for someone to take the bus to work, regardless of wealth. If your $14 million home is situated on a bus line (and many are in Manhattan), it can be quite convenient if you are doing a straight shot in a certain direction.
Sounds to me like he is doing exactly what he should be doing in terms of his investors. And giving a little kick to fund an organization that helps people who are in over their heads is just a plus. Money like that for many small or non-profit organizations can go a long way. Whether the recepients use it wisely, or learn from stupidity, is up to them.
December 3rd, 2007 at 8:11 am
That is interesting. You cant save people from themselves is a very fitting quote for this type of a story! There is only so much you can do.