FORTUNE: Big winner in government's JPMorgan suit: A hedge fund

Found via Santangel’s Review.

In a Wall Street vs. Wall Street fight, the NY AG Eric Schneiderman just gave hedgie Seth Klarman the upper hand.

A hedge fund manager who made money betting against the housing bubble, and the terrible mortgage loans that came with it, is cashing in on the prosecutions as well.

Seth Klarman, the reclusive Boston hedge fund manager, could be the big winner in the recently filed New York Attorney General's lawsuit against JPMorgan Chase (JPM).

Klarman's Baupost Group is acting as the lead plaintiff in a private case against EMC, the former Bear Stearns mortgage unit that is also the focus of NY AG Eric Schneiderman's case against JPMorgan. And if things go Klarman's way, Baupost alone could end up collecting about $310 million from JPMorgan, with a big assist from the government.