As we learned yesterday, some of the material, non-public information Raj Rajaratnam has been accusing of profiting on came from former Goldman Sachs board member Rajat Gupta. In one particular instance, Gupta participated in a conference call with Lloyd Blankfein, who discussed specifics re: upcoming earnings, and dialed up Rajaratnam 23 seconds later to furnish his pal with exact numbers. As he was getting his information almost directly from the horse's mouth, you can imagine his patience was tested when a Galleon analyst questioned its accuracy.
Attorney Stuart Meissner, who represents a former Galleon employee in a whistleblower case pending at the Securities and Exchange Commission (SEC), told CNBC Tuesday that his client witnessed a fraught exchange between Rajaratnam and one of his own analysts at Galleon in late 2007 or early 2008. According to Meissner, the whistleblower attended a meeting of most of the Galleon staff at the hedge fund’s Connecticut headquarters at which Rajaratnam “boldly and without any analytical support declared that Goldman’s earnings would be an exact figure,” giving a specific number that was well above analysts’ expectations.
When one of his own analysts disputed the figure, Rajaratnam allegedly grew frustrated with the interruption, according to Meissner. Rajaratnam allegedly turned to the analyst and said, “You idiot, I just told you the number.”
God damn idiot is right. Didn't these people know who they were working for?! Let this be a warning for any potential employees in the new shop Raj will assuredly be opening once he's cleared on certain charges-- when he gives you a number, no 'analytical support' is necessary.