According to DealBook's Peter Lattman, Goldman has been on the hook for nearly $30 million of Gupta's legal fees, which he racked up in his monthlong insider trading trial that ended in a conviction last week. As a former Goldman board member, Gupta is still protected by the bank's bylaws for Goldman-related legal matters, which his insider trading trial technically was.
This is darkly funny, because Goldman hates Gupta!
To say that Goldman Sachs has paid Mr. Gupta's legal bills grudgingly would be an understatement. Not only did Mr. Gupta abuse his role as a Goldman director, the jury determined, but Mr. Gupta's lawyers assailed the bank throughout the trial. They depicted Goldman as a cesspool of tipsters feeding Mr. Rajaratnam inside information. A defense lawyer called Lloyd C. Blankfein, Goldman's chief executive, who was forced to testify for three days, "cold and callous."
Anyway, it's not a total loss for Goldman. Gupta will have to repay the bank if his conviction stands….