David Slaine May Have Slapped His Galleon Boss, Not Punched Him (UPDATE)

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Updated on

Earlier today, we discussed David Slaine, who the Journal claimed over the weekend is the key cooperating source in the Galleon insider trading case, having allegedly ratted out several of his friends and co-workers, including nightclub bouncer-cum-hedge fund employee, Craig Drimal. For our purposes, we were mostly interested in exploring what appears to be the the Slaine Approach to dealing with perceived slights, be it a faulty keyboard, someone not sharing his French Fries with the Slaine-meister, or suggesting that an improvement in performance was necessary. In each case the response from from Big D was to lose his shit and throw down fisticuffs. Or was it? A commenter using the name "Elyse" came along and left a thousand word rant decrying the lack of fact-checking by Wall Street Journal reporter Susan Pulliam, entitled "Junk In The Journal: Journalist Fails To Fact Check." I don't know who left it (it would be hard to believe "Elyse" is actually David's ex-wife, Elyse Slaine, though some people aren't so good with the internet), and can't find it anywhere else online. But I think we should talk about it anyway. First off, according to "Elyse," the bit with the keyboard being smashed in a rage? Was because the thing didn't work, and Slaine apparently had no other choice but to destroy it (E conflates two separate stories in question-- the smashing of a keyboard and a fight fight resulting from someone not sharing his fries-- so I'll assume the latter was true).

Pulliam wrote that Slaine had a history of violence, stating that he smashed his computer keyboard while at Morgan Stanley over not wanting to share French Fries. The fact was that Slaine pulled out his keyboard when the technology broke down for the fifth time that day, leaving Slaine to trade without knowing his trading positions.

Elyse then addresses the anecdote about Slaine supposedly punching his boss, Gary Rosenbach, in the face, while the two were in the steam room at Equinox, after Gary told Slaine he needed to improve his performance. Elyse claims that while yes, the tiff went down while the two were ass-naked taking a steam, no punches were thrown, and what she says happens instead makes it so much better (in this scenario bitch fight > fight fight).

Pullian [sic] wrote that shortly after joining Galleon, Slaine's trading in healthcare stocks faltered. The fact is that while Slaine ran Healthcare for Galleon, the healthcare fund was up over 70%. The healthcare fund was Galleon's most profitable fund in the firm when Slaine ran that department. Pullian [sic] went on to write that Rosenbach and Slaine argued while in a steam room over Slaine's faulty trading, leading Slaine to punch Gary Rosenbach while Rosenbach was lying down, giving him a black eye. Slaine and Rosenbach argued in a steam room over Rosenbach trading on inside information. Rosenbach stuck his finger in Slaine's face, and Slaine slapped him. Rosenbach never had a bruise.

Also, while Drimal was indeed a bouncer at the Roxy (...) before getting a job through Slaine as an assistant at Galleon, Elyse says contrary to Pulliam's belief, the two did not meet at a club called Vertical, but at a gym by the same name, which is where they "quickly formed a friendship based on a shared passion for weight lifting and their mutual ability to bench-press 400 pounds" (I just wanted to throw that line out there again).
Update, from my inbox:

From: Elyse
To: Dealbreaker
Subject: Slaine
I am David's ex-wife. I was also a journalist and bond trader. I do not rant. I merely gave the facts. You don't have to discredit me with sarcastic comments.
No, the French fry story was not true. I just thought it was too absurd to comment on.
Gary Rosenbach was never David's boss. They were both equal under Raj.
I was married to David for 19 years. I have never seen him get violent.
If you had any contacts on Wall Street, you would actually be hard pressed to find someone that did not want to hit Gary, including every trader that worked at Galleon.
How long will it take people to question why no charges have been brought against Gary Rosenbach to date?
I assume there will not be any front page stories in the WSJ apologizing for falsely identifying Slaine as CS-1 when the Galleon investigation is solved, and Slaine never appeared and was never called on as a witness.

First off, I don't know if there will be a front page apology in the WSJ because I don't work for the WSJ. Second-- I'm not in disagreement with you, girlfriend (that's why I did a whole post based on your comment)! And I'd especially like to know how the paper could screw up the part about Slaine and Drimal meeting at a "nightclub" when in fact it was not only a gym but the most awesome gymever. In fairness, it sounds like a nightclub ("A warehouse-sized health club, complete with neon lights and blaring dance music, it was where the Big Apple's social elite came to sweat, strain, moan, groan, and gyrate") but really, Rupert. You're better than this. Remember the rule patrons snorting coke off each others' dicks in the men's room does not (necessarily) a nightclub make.