In the story of the SEC filing charges against Goldman Sachs, I said that Magnetar was likely the firm that was lobbying for crappy CDOs.

This is not true. It was Paulson & Co. Inc., run by John Paulson, the protagonist of the book The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History, about his fabulously successful shorting of the subprime market.

My guess is that he’s going to seem a Paulson, no relation to the former Treasury Secretary, will find his star dimmed a bit, particularly since the SEC has made it clear that he is under investigation as well.

I guess he sounds a bit less like a brave hero now.