The Securities and Exchange Commission's insider-trading charges against Rajat Gupta, former head of consulting firm McKinsey & Co., comes as a shock to many. The news comes after another McKinsey director pleaded guilty to insider-trading charges in January. Should we expect more to come?
U.S. District Court Judge Jed Rakoff is famous -- or infamous -- for his zeal in righting Wall Street's wrongs. But the Galleon insider trading civil suit he's presiding over has just earned him a wrist-slap from the Second Circuit Court of Appeals.
Robert Moffat, a former executive at International Business Machines, was sentenced to a six-month prison term and a $50,000 fine after pleading guilty in the Galleon hedge fund insider-trading case.
The $550 million SEC settlement is just 8.9% of the $6.2 billion jump in Goldman's market value on the day the deal was announced. And it's an even smaller portion of the backdoor, taxpayer-funded bailout Goldman was handed in 2008.
Goldman Sachs Director Rajat Gupta, who has decided not to stand for re-election, is in more trouble. A government probe of Gupta's relationship with Galleon hedge fund manager Raj Rajaratnam has turned up evidence that someone may have leaked Warren Buffett's plan to put $5 billion into Goldman during the financial crisis.
Prosecutors are looking into a Goldman Sachs director's communications with hedge fund Galleon's Raj Rajaratnam, now on trial for insider trading. The ties revealed raise troubling questions about how widespread insider trading is.
