Paulson, who earned some $2 billion last year in part by betting that the housing market would collapse, has invested in bank stocks that plunged during the 2008 financial crisis. He sold shares during the third quarter in Goldman Sachs (GS) and JPMorgan Chase & Co. (JPM), while building a stake in a bank that remains partly owned partly owned by the government.  Paulson . His Credit Opportunities Fund soared almost six fold in 2007 through wagers that sub prime mortgages would sour. He started the Paulson Recovery Fund in 2008 to invest in financial firms hurt by mortgage write downs.  Citigroup shares now trade at $4.05 each, quadruple the low of 97 cents that they hit in early March, yet below the peak of about $57 in December 2006. The number of common shares outstanding quadrupled to 22.9 billion in September through a preferred stock conversion that gave the U.S. Treasury Department a 34 percent stake in the company.