More On The Hedge Fund That Bet Against The American Dream : Planet Money A hedge fund influenced a deal that it bet against, according to a newly released document.
NPR logo More On The Hedge Fund That Bet Against The American Dream

More On The Hedge Fund That Bet Against The American Dream

This just in from our partners at ProPublica:

A Financial Crisis Inquiry Commission document shows the hedge fund Magnetar selected hundreds of millions of dollars worth of assets that went into a billion dollar Merrill Lynch mortgage securities deal, despite having long asserted otherwise.

As we reported last year, Magnetar helped Wall Street investment banks create at least $40 billion worth of mortgage securities deals known as collateralized debt obligations, or CDOs. The hedge fund also bet against many of those CDOs as part of an investment strategy that paid off handsomely when the housing market crashed and those CDOs collapsed. ...

The hedge fund has consistently denied that it selected assets for the CDOs in which it invested and often bet against. Last April, in response to questions from ProPublica, the hedge fund said that "Magnetar did not choose the assets in any CDO. ... "

Read the full post.

For more:

* Listen to the Magnetar story that aired last year on This American Life.

* Watch "Bet Against the American Dream," a show tune about Magnetar.