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Lloyd Blankfein Confirms That Ex-Goldman Board Member Rajat Gupta Was In The Wrong When He Called Up Raj With Inside Info About The Firm

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As you might have heard, Lloyd Blankfein has been testifying this morning in the Raj Rajaratnam trial. Lloyd is there because one of Rajaratnam's alleged insider trades was based on information he received from former Goldman Sachs board member Rajat Gupta. To recap, Gupta took part in a fall 2008 conference call with GS management and fellow board members and after hanging up, made himself wait exactly twenty three seconds before getting Raj on the horn. Was this cool with LB and was it considered an acceptable course of action for those lucky enough to be part of Goldman's inner sanctum, prosecutors asked?

You bet your asses it was not.

"On that call, did Rajat Gupta violate Goldman Sachs's confidentiality policy?" Special Assistant U.S. Attorney Andrew Michaelson asked.

"Yes," Mr. Blankfein said.

Mr. Blankfein wore a dark suit. He smiled at the gathered gaggle of reporters covering the trial as he walked in the courtroom and gestured with his hands as testified.

Blankfein: Gupta Violated Board Confidentiality [WSJ]


Rajat Gupta Appealing Suggestion Passing Material Non-Public Info To Hedge Fund Manager Friend Was "Insider Trading"

It's a dirty, dirty phrase and one Gupta says doesn't apply to him; he's waiting for others to get on board.