John Paulson Has Personally Guaranteed the 92nd Street Y’s Investments

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John Paulson, president and co-fund manager of Paulson & Co. Inc., attends a tennis match during U.S. Open at the Billie Jean King National Tennis Center in New York, U.S., on Tuesday, Aug. 30, 2011. Paulson and his wife, Jenny, had planned to host a fund-raiser for Republican presidential hopeful Mitt Romney at their estate in Southampton on Sunday but it was postponed due to Hurricane Irene, according to Wall Street Journal. Photographer: Rick Maiman/Bloomberg via Getty Images
Paulson.Photo: Rick Maiman/Bloomberg via Getty Images

John Paulson hasn’t had a very good year. In fact, as he wrote to investors in his third-quarter letter, it’s been the worst year ever for the billionaire hedge-funder’s firm. One Paulson investor that doesn’t have to worry, though, is the 92nd Street Y. According to Dealbook, the organization has a very special arrangement with Paulson and the three other hedge-funders/board members who manage the nonprofit’s funds: They’ll personally guarantee any losses incurred from their investments. "We’re certainly not ashamed of any of this,” director Sol Adler told the Times, which estimates Paulson (whose daughters attended the 92nd Street Y’s prestigious preschool) will cut the institution a check for $4 million or so. All of which raises one very important question for Intel Noreen: If they’re Too Culturally Big To Fail, can’t they make their tickets a little cheaper?