John Paulson, whose hedge fund company Paulson & Co gained from the transaction underlying the fraud charges brought against Goldman Sachs by the US Securities and Exchange Commission, has told his investors that he will pay the expenses of any suit against his company in the matter, the Financial Times reports.

But Paulson has stressed that he was not expecting any such action against his company. “The Securities and Exchange Commission is clear that we did not misrepresent anything. The SEC complaint has no impact on us.”

This publication has been told by lawyers that a wave of lawsuits is likely against Goldman Sachs from irate investors. Goldman's wealth management business could be damaged by the affair, although the Wall Street giant has vigorously denied any wrongdoing.