Tuesday, June 5, 2012

Goldman CEO Downright Jovial At Ex-Director's Trial





On Monday, Blankfein confirmed Gupta's presence on a conference call the afternoon of Sept. 23, 2008, during which the Goldman Sachs Board of Directors debated whether to accept $5 billion from investor Warren Buffett at the onset of the financial crisis, HuffPo writes.. Prosecutors allege that shortly after that call, Gupta phoned Rajaratnam to pass along information about the deal.

Rajaratnam immediately using that information to buy shares in Goldman, according to prosecutors -- a charge corroborated by Rajaratnam’s former assistant during separate testimony at the Gupta trial in May. Goldman didn’t announce that it was accepting the investment until after markets closed later that day.

Blankfein also testified that during a June 2008 meeting in St. Petersburg, Russia, the Goldman board discussed the possibility of purchasing either a distressed commercial bank or the insurance giant AIG -- information that Gupta was heard relaying to Rajaratnam on a wiretapped phone conversation later that summer. That tape was presented to jurors earlier in the trial.

“It was agreed that AIG would be a suitable target” at the St. Petersburg meeting, Blankfein told the jury Monday.  Any such information discussed in board meetings was secret, Blankfein said. “All parts of it were confidential. The fact that anything was discussed in the board meeting is itself a confidential fact.”
http://www.huffingtonpost.com/2012/06/04/rajat-gupta-lloyd-blankfein-insider-trading_n_1569446.html?ref=business

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