Wednesday, May 2, 2012

Goldman Gets More Unwanted Publicity in Gupta Case





Oy! Goldman Sachs, just months after being assailed by an ex-employee for harboring a “toxic” culture, faces a harsh spotlight this month in Manhattan federal court over how well a senior official guarded its secrets.

Rajat Gupta, a former Goldman Sachs director, goes on trial May 21 on charges of giving inside information to Raj Rajaratnam, the Galleon Group LLC co-founder serving 11 years in prison for insider trading. Gupta’s lawyers said they may point to others at the bank who passed Rajaratnam illegal tips. At least three other Goldman Sachs employees are said to be under investigation related to Galleon insider trading.

The renewed scrutiny of Goldman Sachs comes after the firm endured a wave of publicity that drove down its stock price in the short term. Most recently, former derivatives trader Greg Smith in a March New York Times opinion piece criticized the company’s treatment of clients. Goldman Sachs’s market value fell $2.15 billion the day it was published....

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