Whether this allegation that there was insider trading in Goldman Sachs in relation to the investment made by billionaire Warren Buffett is true or not, there will be wide repercussions and ramifications of this charge. Mr. Rajat Gupta must come out clean, otherwise he will lose his credibility to investors. Here’s the details of the news.
A former Goldman Sachs board member has been charged with insider trading.
The US Securities and Exchange Commission said Rajat Gupta leaked details about Warren Buffett’s $5bn (£3bn) investment in Goldman in 2008 to Galleon Group founder Raj Rajaratnam.
The SEC said Mr Gupta had tipped Mr Rajaratnam by phone minutes before the investment by Mr Buffett’s Berkshire Hathaway became public knowledge.
Mr Gupta’s lawyer called the allegations “totally baseless”.
A spokesman for Goldman declined to comment, as did Jim McCarthy, spokesman for Mr Rajaratnam. – BBC