Comments on: Be careful who you show off to, Rajat Gupta edition

By: midasw

midasw — Tue, 08 Mar 2011 18:14:11 +0000

Worth looking back at Texas Gulf Sulphur case in 1964. Circumstances almost identical: a director of TG (Thomas Lamont, retired Vice-Chairman of Morgan Guaranty) left a TG board meeting and called Longstreet Hinton, then head of MG’s pension investment to tip him off that rumors of a huge multi-mineral strike by TG in Ontario were true. Hinton then bought stock for various accounts (including his own). SEC did not bring criminal charges, and the issue bled away in a dispute, largely terminological, over what news about itself TG had made public when. Regarding motive in the Gupta matter, Naftalis, G’s lawyer, pointed out that his client had lost $10 million with Raj. Might there have been an agreement involving a make-whole? $10 million was probably real money to Gupta.

By: Archmaverick

Archmaverick — Thu, 03 Mar 2011 09:16:20 +0000

With the kind of money lost in the 2008 financial crisis, and bankrupt populace thanks to poor credit/lending policies by the banks, all the government/regulators could come up with are insider trading charges against a few!!! Its a joke. Who is being arrested for the systemic risk placed on the entire country because of the bad policies of banks/congress?? Isn’t the value of real estate decided by the highest bidder, who in turn in financed beyond his means by the banks? Its a disgrace!

By: MaxUtil

MaxUtil — Wed, 02 Mar 2011 23:51:48 +0000

Why are we not even talking about this aspect of the story?
Because it’s not really important, unless you think there’s some south asian cabal working to undermine our financial system. People tend to have associations with people of similar background. This only seems odd if you view white as being the “default” race with all others being unusual.

The Madoff story was notable because it is considered especially heinous to rip off charities and “your own people. (And because it is still widely assumed that jews stick together to screw non-jews.)

By: LadyGodiva

LadyGodiva — Wed, 02 Mar 2011 16:36:37 +0000

Frankly, I’m surprised that no one is willing to talk about the 800LB gorilla in the room, including Felix. So I’ll name it: what’s the South Asian cultural insider connection to all this? Uh-oh, are the thought police coming after me? Probably.

But it is striking that when Madoff exploded in our collective faces one of the MOST commented upon things was the way he ripped off his fellow Jews–and not just any old Jewish people, he ripped off Elie Wiesel! He ripped off charities! He literally took food out of children’s hands!

But at least he has been confronted about his abuses, and above all his abuses of his own people.

This insider trading scandal is about something different. It is about people NOT betraying their own people, but helping them break into the insider’s club.

Why are we not even talking about this aspect of the story?

By: Curmudgeon

Curmudgeon — Wed, 02 Mar 2011 11:38:43 +0000

@TED – but a blog is hard work! Giving insider information is not.

By: johnhhaskell

johnhhaskell — Wed, 02 Mar 2011 07:36:56 +0000

In related news, Charlie Sheen’s Twitter account is now up and running. Maybe Gupta can guest-post.

By: EpicureanDeal

EpicureanDeal — Wed, 02 Mar 2011 01:28:24 +0000

Better advice: If you want to show how clever and well-plugged-in you are, start a blog.

There is precedent.

By: EpicureanDeal

EpicureanDeal — Wed, 02 Mar 2011 01:26:57 +0000

Except you damn well better be sure the journalist will treat that insider information as information, and not trade on it. The insider trading laws are designed to come after the leaker even if that person did not personally benefit financially from the leak. That appears to be the case here with Gupta.

Not that journalists are known for insider trading, but it’s not unheard of. And last time I checked, journalists are human.

Caveat leakor.

By: ottorock

ottorock — Tue, 01 Mar 2011 22:44:47 +0000

100% agreement.