Another Goldman Sachs story, insider trading

http://www.dailyfinance.com/story/investing/the-other-big-goldman-story-insider-tips-from-a-director/19443812/?icid=main

However, a much bigger story yesterday slipped under the media's radar -- Goldman director Rajat Gupta is being probed on whether he collaborated with hedge fund Galleon Holdings, whose manager has been indicted on insider trading charges. And Gupta used to be the top executive at the world's most prestigious consulting firm, McKinsey & Co., which has a director who pleaded guilty in the Galleon case. This raises the question of how deeply insider trading is embedded in our financial markets and corporate governance at the highest levels.

According to The Wall Street Journal, Gupta, McKinsey's former worldwide managing director and a Goldman director since 2006, is being probed by federal prosecutors. They're trying to find out whether Gupta shared insider information about Goldman with Raj Rajaratnam, who ran $3.7 billion hedge fund Galleon and has been accused of insider trading in at least 20 stocks, including Goldman's. Prosecutors allege Rajaratnam conspired to obtain nonpublic information about Goldman earnings in June and December, 2008, and Berkshire Hathaway's (BRK.A) September, 2008, investment in Goldman before their public announcement.

Gupta told Goldman he won't stand for reelection to the board after prosecutors told him they were "reviewing recorded telephone calls between him and Rajaratnam," reports the Journal. No doubt, the Goldman director has a pretty clear recollection of what's on those recordings. Gupta told the Journal that "other commitments" is why he's quitting.
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While I hardly think this is a "bigger story" than designing a system to crash the world's economy and conspiring to make money off that crash, effectively looting the entire world, this is just more information about how wretchedly rotten the entire top of the financial pyramid is. More information at the site about the other players in this particular drama.

Bring back Madame la Guillotine

when a corporation has become so depraved and such a danger to the world that it needs to face the death penalty, to have its charter revoked.

One of my funds holds their stock. I sincerely hope they dump it or I'm going to have to dump them.