Rajat Gupta, the business titan charged today with insider-trading by the SEC, was at the center of Wall Street—and the crimes he has been accused of committing allegedly occurred at the very heart of Wall Street as well.
Gupta was a managing director at McKinsey, arguably the most famous and prestigious consulting firm in the world. He later became an independent director at Goldman Sachs —arguably the most famous and prestigious investment bank in the world—in which role he is said to have engaged in massive insider trading regarding a huge cash infusion from Warren Buffet, who is arguably the world’s most famous investor.
The alleged crime is astonishingly brazen, as my colleague John Carney reports:
“The SEC says Gupta tipped Rajaratnam about Warren Buffett’s Berkshire Hathaway’s $5 billion investment in Goldman and Goldman’s upcoming public equity offering before that information was publicly announced on Sept. 23, 2008. Gupta allegedly called Rajaratnam immediately after the board conference call, just a few minutes before the market closed. Rajaratnam must have been prepared to move, because within one minute he had arranged for Galleon funds to purchase more than 175,000 share of Goldman, according to the SEC. Rajaratnam even had time to spread the tip to another trader, who also bought shares of Goldman. The news became public at 6 p.m. that day. The next day, Rajaratnam sold the shares for a $900,000 profit.”
———–and the author asks why?
heres why..because he could..he had probably done this many times before..for every one they catch i bet 4-5 are never caught..
one other reason..greed..