In contrast, one senior banker at Bear Stearns Cos. turned down the business. He questioned the propriety of selling deals to investors that a bearish client was involved in putting together, according to people familiar with the matter.
...In a statement, Goldman said it "never represented to ACA" that Paulson was investing in hopes the values would rise. People close to the firm said officials saw no need to disclose to investors that Mr. Paulson had a hand in creating the portfolio or was taking a bearish position.
via online.wsj.com