SENTENCED: Goldman Director Gets Two Years In Prison

A slap on the wrist and a 2-year vacation at a country club prison.  On a private island in the South Pacific, Jon Corzine is doing a touchdown dance.

Gupta threw away a distinguished career for crimes committed while serving on Goldman's board.  Stephen Friedman, another board member has also faced scrutiny.

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Bloomberg

Rajat Gupta, the former Goldman Sachs director and McKinsey & Co. managing director who rose to the pinnacle of Wall Street, was sentenced to two years in prison for passing inside tips to his business partner.

Gupta, who ran McKinsey from 1994 to 2003, was sentenced today by U.S. District Judge Jed Rakoff in Manhattan for leaking stock tips to Galleon Group LLC co-founder Raj Rajaratnam.  Gupta, 63, was convicted by a jury in June of one count of conspiracy and three counts of securities fraud.

Rakoff ordered Gupta to report to prison on Jan. 8 and fined him $5 million, rejecting a bid to allow him to remain free pending appeal.

Prosecutors had sought a prison term for Gupta of as long as 10 years in prison. Assistant U.S. Attorney Richard Tarlowe today argued that Gupta’s crimes warranted a substantial prison time because of his prominence in the business world and the egregiousness of his crimes. Tarlowe said a sentence of probation would give the impression that there is “a two-tier system of justice.”

While Gupta didn’t personally profit, his tips allowed Rajaratnam to earn millions of dollars, Tarlowe said.

Continue reading at Bloomberg...

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Raj Gupta on India's growth:

Gupta Interview - July, 2011.

• Lloyd Blankfein Testifies In Galleon Insider Trading Case
• More Blankfein Testimony - 'I Check Goldman Profits Daily'

Comments

[DailyBail]

The Irish Sue the Banks

http://www.youtube.com/watch?v=yDwjtCQZQ7E

[DailyBail]

Dutch court says Samsung does not infringe Apple patent

http://www.reuters.com/article/2012/10/24/us-samsung-apple-dutch-court-idUSBRE89N0ER20121024

[DailyBail]

Details from Bloomberg on Gupta case.

http://www.bloomberg.com/news/2012-10-24/rajat-gupta-gets-two-year-sentence-for-insider-trading-1-.html

[DailyBail]

Oct. 24 (Bloomberg) -- Douglas Burns, a former federal prosecutor, talks about today's sentencing of former Goldman Sachs Group Inc. director Rajat Gupta to two years in prison for insider trading.

http://www.bloomberg.com/video/former-u-s-prosecutor-burns-on-gupta-sentencing-E31Y0BXuS7Oc~15hE446GQ.html

Video

[Cheyenne]

A criminal conviction? Holy Jesus, Pyle! What is this?!!

I'll take it. Granted, it was for insider trading, and not for any of the frauds in residential real estate loans or MBS, or for fraudulent foreclosures, or anything else that caused the crisis. God forbid the government starts yanking on those planet-sized twine balls. But at least a Goldscum is headed to prison. Hell yeah.

[LiberatedCitizen]

This is a great article in that it shows a lot of the banks wrongdoings but it's a joke as far as Dodd-Frank since that legislation does nothing to prevent taxpayers being on the hook again

Are the big banks winning?

http://blogs.reuters.com/great-debate/2012/10/24/are-the-big-banks-winning/


Too big to maintain?
snip

“For all its bluster, Dodd-Frank leaves TBTF entrenched. . . . In fact, the financial crisis increased concentration because some TBTF institutions acquired the assets of other troubled TBTF institutions. The TBTF survivors of the financial crisis look a lot like they did in 2008. They maintain corporate cultures based on the short-term incentives of fees and bonuses derived from increased oligopoly power.”

http://www.washingtonpost.com/opinions/george-will-too-big-to-maintain/2012/10/12/9f8f8e94-1497-11e2-be82-c3411b7680a9_story.html

Too Big To Handle

http://www.project-syndicate.org/commentary/the-growing-consensus-against-big-banks-by-simon-johnson

The Flawed Case for Fiscal Stimulus


http://economix.blogs.nytimes.com/2012/10/24/the-problem-with-the-stimulus/