The Securities and Exchange Commission is looking into possible insider trading by Wall Street executives following a private 2008 meeting with then-Treasury Secretary Hank Paulson. The meeting took place in the New York offices of Eton Park Capital Management, an investment firm founded by Obama bundler Eric Mindich.
The Wall Street Journal reports:
SEC investigators are seeking information on whether Mr. Paulson suggested in the meeting that the government was willing to rescue the struggling mortgage-finance companies Fannie Mae and Freddie Mac, FMCC +6.67% the people said.
The SEC is also looking at whether the firms traded on any information Mr. Paulson had shared, the people added.
Mr. Paulson, a former Goldman Sachs Group Inc. chief executive who helped lead the government's response to the financial crisis, attended what his calendar called a "lunch roundtable with hedge fund and private equity firm managers" on July 21, 2008, at the New York offices of Eton Park Capital Management LP.