"These allegations do not represent the force that I joined and this condition cannot stand, " Mr Paulson said on Wednesday.

BBC: Canadian Mounties face sexual harassment allegations

Key lending such as credit cards, car loans and student loans had essentially come to a halt in October, Mr Paulson said.

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Mr. Paulson said the case wasn't a distraction that was affecting the firm's investments, and that he was confident the public glare would abate.

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But one person familiar with Mr. Paulson's thinking said he would never return to Goldman.

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Mr. Tourre said Tuesday he told ACA that Paulson was betting against the deal.

WSJ: Tourre Testimony Raises Legal Questions

Mr Paulson, a veteran officer who was announced as RCMP's new commissioner on Wednesday, said the sexual harassment investigation would be the first step in repairing the Mounties' damaged reputation.

BBC: Canadian Mounties face sexual harassment allegations

Mr. Tourre's comment was consistent with testimony provided to the SEC by a former Paulson executive who said he had told ACA of Paulson's intention, according to people familiar with the matter.

WSJ: Tourre Testimony Raises Legal Questions