Bad for Business

Paulson Clients Eye the Door

Hedge-fund manager John Paulson may have dodged SEC charges for his role in Goldman Sachs’ alleged fraud, but that doesn’t mean his involvement in the bank’s alleged scheme isn’t bad for business. The Wall Street Journal reports that some of Paulson’s investors are thinking about withdrawing their money due to his role in the Goldman lawsuit. They are anxious that the scrutiny the hedge fund faces could spread to other deals, and also that Paulson will be distracted. Paulson is scrambling to reassure them, hosting a conference call with 100 clients on Monday.