THE TELEGRAPH: French president Nicolas Sarkozy faced potential embarrassment on Friday after it emerged that the most generous donor to his wife's charitable foundation was John Paulson – the man whose hedge fund is at the heart of the US government's case against Goldman Sachs.
The US investment bank is accused of defrauding investors by failing to say that Mr Paulson, a prominent hedge fund manager, bet against a Goldman sub-prime debt product that he helped design.
Mr Paulson correctly bet that the US housing bubble would burst, reaping a £10bn profit for his Paulson & Co hedge fund in 2007. The speculator banked a £2.4bn bonus that year in one of the largest payouts in the history of corporate America.
It transpires that Mr Paulson and his wife, Jenny, pledged to donate €500,000 (£435,000) to Mrs Bruni-Sarkozy's foundation "every year for three years". >>> Henry Samuel, in Paris | Friday, April 23, 2010
