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

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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.


David Slaine, Government's Undercover "Tip-Mining Machine," Apparently Under The Impression Insider Trading Works On A 3-Strike Basis

Remember David Slaine? For those who need a refresher, he is the former Morgan Stanley managing director and ex-Galleon trader who began working as an FBI informant in 2007 and who was outed for doing so by the Wall Street Journal in January 2010. At the time, we learned a few notable things about Slaine, some of them germane to his role in helping the government go after people trading on material non-public information, others special in their own way, like: 1. He takes french fries, and perhaps all snacks, very seriously. In 1993, Slaine triggered a fist-fight with a colleague on the trading floor after needling him because he wouldn’t share his french fries. Others broke up the fight. 2. He doesn't wait for people to towel off and get dressed before knocking their teeth out. One morning early in 2001, before trading began, Gary Rosenbach, then was the No. 2 executive under Mr. Rajaratnam, and Slaine were in a steam room together after exercising at an Equinox Fitness Club. Mr. Rosenbach was pressuring Mr. Slaine to improve his performance. As Mr. Rosenbach lay on his back on a bench, Mr. Slaine punched him, giving him a black eye and ending their friendship. 3. Humans aren't the only ones often asked "you want a piece of me?" He once smashed a computer keyboard in a fit of rage, says a person familiar with the incident. 4. While working on Wall Street, he eschewed the traditional channels of employee recruitment (Wharton, etc), preferring instead to pick up fresh analysts at the club. While at Morgan Stanley, he met [Craig] Drimal, then a nightclub bouncer at the Vertical Club in Manhattan. The two quickly formed a friendship based on a shared passion for weight lifting and their mutual ability to bench-press 400 pounds...Shortly after arriving at Galleon, Mr. Slaine persuaded Galleon officials to give a position to Mr. Drimal, who then was working as a bouncer at the Roxy nightclub in Manhattan. 5. Being a person with whom he "formed a friendship based on a shared passion for weight lifting and [a] mutual ability to bench-press 400 pounds," possibly the greatest line written about anyone who's ever worked on Wall Street and which which cannot be said enough, means little in the long run if he knows you've been playing it fast and loose with securites laws. In July 2007, the FBI showed up at Mr. Slaine's door on W. 57th Street in Manhattan and confronted him. Mr. Slaine agreed to help the government. At the time, federal prosecutors in Manhattan were trying to make headway on another investigation that eventually led to the charges involving Galleon. They asked Mr. Slaine who he knew that might be participating in insider trading. Mr. Slaine's answer: his friend Mr. Drimal, according to people familiar with the matter. In September 2007, Mr. Slaine—identified in the complaint as CS-1—tried out his body wire for the first time, meeting Mr. Drimal in New York. During the meeting, Mr. Drimal gave Mr. Slaine a piece of paper with four stock symbols, according to the complaint. He told Mr. Slaine the four companies were all acquisition targets. At the meeting's end, Mr. Drimal told Mr. Slaine to destroy the list. He warned him to "be careful" in trading the securities because no news of the takeovers had surfaced publicly...After the meeting, Mr. Slaine went to a nearby hotel where an FBI agent was waiting, says a person familiar with the matter. The pair went to a room where Mr. Slaine removed the wire. Anyway, Bloomberg recently checked in to see what Slaine's been up to these last couple years and other than his "multi-year experience" with the FBI being "tremendously traumatic," he seems to be doing pretty well.