Citigroup reported a $9.8 billion loss driven by the sub-prime mortgage mess…
…while hedge fund manager John Paulson personally reaped $3 to $4 billion betting against the housing market (funds he ran were up $15 billion in 2007, according to the Wall Street Journal).
“While we never made a subprime loan and are not predatory lenders, we think a lot of homeowners have been victimized,” Mr. Paulson says.
Mr. Paulson has taken profits on some, but not most, of his bets. He remains a bear on housing, predicting it will take years for home prices to recover.