The Bureau Of Investigative Journalism – The hedge fund Magnetar helped create billions of dollars’ worth of risky deals called collateralized debt obligations, many of which failed spectacularly in the financial crisis. Magnetar, meanwhile, had taken positions that allowed the firm to profit when many of those same CDOs collapsed. Since Magnetar’s dealings was reported on two years ago, there’s been a long line of investigations and settlements related to the hedge fund.
Magnetar itself has never been charged with wrongdoing, and it has always maintained that it did not have a strategy to bet against CDOs they were involved with. But today’s Wall Street Journal reported that Magnetar is indeed under investigation by the SEC.
