Tuesday, March 1, 2011

SEC: Keeping It a South Asian Cage Match

Who even knew Goldman Sachs had a South Asian on its Board of Directors? The SEC found one, to keep the current SEC harassment, for the non-crime of insider trading, pretty much a south Asian cage match.

The Securities and Exchange Commission has charged former Goldman Sachs  director Rajat Gupta for allegedly passing inside information to hedge fund operator Raj Rajaratnam. Gupta served on the board at Goldman and Procter & Gamble and was a friend of Rajaratnam. According to the SEC, he tipped the Galleon Management hedge fund manager with inside information about the quarterly earnings at both companies as well as an impending $5 billion investment by Warren Buffett's Berkshire Hathaway.

I'm sure Buffett, who bought the position just days before the Treasury announced a bailout of Goldman and other big banks, and has admitted that Hank Paulson talked to him in code ("After years of friendship, Buffett was familiar with Paulson's code") , is simply shocked that such things go on. Shocked! As must be Dick Durbin.

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