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Things That Would Have Made For A Nice Alternate Post-Financial Crisis Universe

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Lloyd Blankfein running AIG.

Today in court, prosecutors walked us through the dream, courtesy of a recorded conversation between former Goldman board member Rajat Gupta and Raj Rajaratnam.

Raj Rajaratnam: I called you because there's a rumor that Goldman might buy a commercial bank.

Rajat Gupta: There was a big discussion, a divided discussion, at a board meeting. More people were saying why, because it's a low return business... but it may be interesting to develop a deposit base which is a low cost source of funding. Not that we're having trouble raising funding...

Rajat Gupta: AIG was in the discussion mix... there's some value there, with AIG or Wachovia.

Goldman Sachs Considered Buying AIG In 2008 [NetNet]


The Universe Has Good News And Less Good News For Rajat Gupta

The less good news is that a jury found the former McKinsey executive guilty on three counts of securities fraud and one count of conspiracy for passing material non-public information to his friend*, convicted insider trader Raj Rajaratnam. The good news: 1. Rajat could go to jail for twenty years but probably won't ("Gupta faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines.") 2. Sentencing is scheduled for October 18 so he's got the whole summer and then some into a Zen place about going to prison. Also! Plenty of time to do all those things he was too busy for when he was working. This is gonna be his time. Time to taste the fruits and let the juices drip down his chin. The summer of Rajat! Gupta Found Guilty Of Insider Trading [WSJ] *Friend Rajat's ass.