Actually, Paolo Pellegrini Did Not Knife John Paulson In The Back (GS)

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When we heard from CNBC Steve hat Paolo Pellegrini was the one who told the SEC what it needed to go after Goldman it seemed like a huge story -- a case of a former Paulson man giving the finger to his old boss.

Turns out the news isn't quite so sexy.

Actually, this is what happened.

First, the SEC spoke with Paulson in 2008 to find out more about the trade. They thought he'd be a good guy to tell them who was involved, what happened, stuff like that.

Then, Paulson told the SEC, Talk to Pellegrini. So they did.

Then the SEC found out about Paulson's hiring Goldman to create ABACUS. And Goldman hiring ACA to manage ABACUS. And Paulson telling ACA, please put these mortgage bonds in ABACUS. And ACA not knowing that Paulson was actually short ABACUS. You know the rest or you can read it here.

In short, Pellegrini didn't do anything to Paulson.

This is the exact statement we got from a spokesperson for Pellegrini:

In 2008, the U.S. Securities and Exchange Commission approached Paulson & Co., among a number of financial institutions, as part of a publicly disclosed inquiry into collateralized debt obligations.

At that time, Paolo Pellegrini was a portfolio manager for Paulson & Co. and was familiar with the CDO market.

Paulson & Co. provided the SEC with the names of employees, including Mr. Pellegrini, who might be interviewed as part of the SEC's inquiry. Mr. Pellegrini cooperated fully with the SEC 's inquiry as did a number of his colleagues at Paulson & Co.

Mr. Pellegrini left Paulson & Co. at the end of 2008 to form his own investment firm. Mr. Pellegrini maintains an amicable relationship with Mr. Paulson and remains grateful for the professional opportunities extended to him by Mr. Paulson, for whom he has the highest regard.

We're still a little unclear, now, on what the SEC got from Pellegrini, or what it could have gotten from him that it could not have gotten from Paulson directly.

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