The Web site Big Government reports that John Paulson is the single biggest donor to the Washington-based "Center for Responsible Lending," which was pushing "cramdown" legislation that would have let bankruptcy judges modify mortgages. A BusinessWeek article in 2007 quoted a lobbyist on the other side of the issue explaining what was going on:
Scott Talbott, a lobbyist for the Financial Services Roundtable, a trade association that counts among its members Citigroup (C), JPMorgan Chase (JPM), and American Express (AXP), complains that Paulson is making money on the backs of painful home foreclosures: "The firm has bet that Americans will lose their homes. If the bankruptcy bill is enacted, [Paulson] stands to make large profits."
And the Wall Street Journal reports this morning that Mr. Paulson "has held political fund-raising events in recent weeks" for both Senator Schumer and the Republican National Committee.