From Zero Hedge:
According to CNBC's Kate Kelly, Paulson has given up on his $30 price target on Bank of America by the end of 2011, and instead has dumped a "substantial stake" in its holdings of the bank's stock.
And so... the hedge fund -- which has now become the butt of all due diligence jokes -- is about to eat more crow, especially as other objective skeptics have long been warning that the bank is massively underreserved for what is about to become a legal fee free-for-all following the just announced non-settlement with the BlackRock, Pimco, New York Fed group, and thus a ticking timebomb.
... And here is Kate Kelly's report:
Investors on Wednesday welcomed Bank of America's $8.5 billion settlement with disgruntled mortgage-securities holders, sending its shares up 3 percent.
But at least one major shareholder had already taken some of its chips off the table, according to people familiar with its position: Paulson & Co., the $38 billion hedge-fund behemoth.
During the course of the past two months, Paulson sold...
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