Rajat Gupta indicted for insider trading
Rajat Gupta, senior partner emeritus at McKinsey and Company listens during a televised session by Indian NDTV at the World Economic Forum on January 28, 2010 in Davos.
Kai Ryssdal: Wall Street woke up to a shocker today, involving one Rajat Gupta.
Who, you ask? Fair question.
He's just a guy who used to head McKinsey, the big consulting firm, and who used to sit on the board of directors at Goldman Sachs. And who as of today, also allegedly the insider's insider.
Gupta was indicted this morning for feeding trading tips to Raj Rajaratnam, the hedge fund guy who was recently and notably convicted for insider trading.
How big a deal? Quite, says John Coffee of Columbia Law School.
John Coffee: I think it's very significant. This is the person who really is the representative of Corporate America, who in the view of many was the most culpable actor in this entire drama.
White-collar criminal defense attorney Solomon L. Wisenberg sees it differently.
Solomon L. Wisenberg: The government has tons of witnesses in the Rajaratnam case, they don't have that here. What it looks like they have here is some circumstantial evidence. They have also got a person who is extremely highly regarded as a defendant.
Six counts, by the way. Bail was set at $10 million, secured today by a house Gupta owns in Connecticut.