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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