http://dealbook.nytimes.com/2011/10/26/gupta-surr…
The sacrificial lambs are starting to line up. Once again, why this fool wasn't on a jet back to southeast Asia is beyond me.
I am going to look into my crystal ball and predict a conviction, regardless of the evidence. The proletariat demands justice and justice is what they will get.
I don't think they'll convict without evidence beyond a reasonable doubt, though I don't think they would have prosecuted if the prosecutor wasn't pretty darned sure he had it.
The FBI and SEC need more funding to investigate this kinda stuff. It's good for the industry to let folks know that the regulators don't tolerate insider trading and poor agency. But at the same time, we need to revisit SOX and the other regulations and figure out if there's anything that's not helping protect investors.
You have to understand how these raids work. The FBI keeps everything secret until one day you get woken up by 6 guys from the SWAT team in your bedroom pointing guns at you. And the "It can't happen to me" "Did I even do anything wrong?" effect is pretty strong. The second part is what really scares me about some of this stuff. Raj and Gupta probably didn't realize they'd done anything illegal or immoral.
The former CEO of McKinsey and current board member of Goldman Sachs wasn't aware that telling a friend the material details of a private board meeting was illegal? This friend happened to run a multi-billion dollar hedge fund.
Come on.
Perhaps they didn't think they'd get caught.
Perhaps they didn't think it was immoral, as morality is subjective.
I don't think it's reasonable to say these guys didn't realize they were doing something illegal. I don't even think it's reasonable to argue "gray area".
.
What's with the disproportionate number of minorities who are getting ensnared in unethical / insider trading fiascos?
Raj, now Gupta and Anil Kumar, the Kweku guy (UBS), before that Wini Jiau and the whole SAC debacle...
Wouldn't be surprised if it's the direct byproduct of recruiting the brains sans Western ethics
Insider trading is illegal, not immoral. Just like speeding.
This guy knew people were sniffing around. The FBI isn't that slick. Either way you slice it, get on the plane.
And this guy is going down evidence or none. Insider trading is nebulous. The people want heads to roll and roll they will.
This guy is an alumnus of my Alma mater; He was worshiped on campus. Damn.
I would compare spreading insider info to speeding. I think there's a first amendment case to be made for folks with insider info having a God-given right to share it. But it's immoral to sell a house that's been damaged by termites without disclosing it and it's immoral to trade on insider info without disclosing it to the counterparty prior to the sale.
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