Behind the snooze-worthy facade, the Gupta trial is anything
but dull. Much of the trial’s drama stems from the Icarus-like fall of
Gupta himself. A regal-looking Indian immigrant, Gupta rose from nothing to
build an enviable life — first non-American head of McKinsey, trusted advisor
to CEOs all over Wall Street, inhabitant of a 26-room Westport mansion that was once
owned by the retail magnate J.C. Penney. Gupta's accomplishments are so
comprehensive that they have become a strategy for his defenders — why, they
ask, would such a lucky guy risk all he had by leaking secrets to a friend?
This week, Goldman Sachs chief Lloyd Blankfein will be among
the witnesses to take the stand to help the government answer that question.
Blankfein is expected to tell jurors that Gupta was a bad apple who played fast
and loose with information about Goldman’s earnings, in violation of the bank’s
policies. Publicly throwing a former director under the bus is an odd
step for a CEO of a company known for its discretion, but for Blankfein, the
alternative to dropping a dime is much worse. Gupta’s defense team has sought
to paint Goldman Sachs as a cesspool of illegal tipsters, any number of whom
could have leaked information to Rajaratnam.
Calling Blankfein to the stand will also shed light on the
difference between Wall Street’s twin currencies. On Wall Street, people like Gupta and
Blankfein are considered members of a class that has power, but not real money.
In court last week, Gupta's private banker estimated his net worth at $84
million — a fortune by any objective measure, but a fraction of what Rajaratnam
and other hedge fund moguls are worth.....
.
Read all about it at http://nymag.com/daily/intel/2012/06/why-the-rajat-gupta-trial-is-a-big-deal.html
No comments:
Post a Comment