Thaindian News

New York, Mar. 24 (ANI): Goldman Sachs Chief Lloyd Blankfein has told a federal court jury here that former Indian American director Rajat Gupta had breached the bank’s confidentiality in telling hedge fund boss Rajaratnam that Goldman’s board had considered buying a commercial bank and insurance giant AIG.

Blankfein took the stand in Manhattan federal court to testify for the government in its insider-trading case against Galleon co-founder Rajaratnam, who is accused of pocketing 45 million dollars by getting illegal inside tips about the bank from ex-Goldman director Rajat Gupta, as well as from tipsters at other firms.

According to the New York Post, federal prosecutors played a wiretapped conversation for Blankfein between Gupta and Rajaratnam on July 29, 2008, when Rajaratnam called to suss out more information on rumors that Goldman was thinking of buying a commercial bank, such as Wachovia.

In the call, Gupta revealed that Goldman’s board had weighed such an acquisition and had also discussed the possibility of buying AIG.

“Yes, this was a big discussion” at a recent board meeting, Gupta said. “It was a divided discussion.”

After playing the recording, prosecutors asked Blankfein whether Gupta had violated the bank’s confidentiality agreement.

“My sense of it? Yes,” Blankfein responded.

The Goldman chief agreed to testify after Rajaratnam’s lawyers said they would not dredge up pending investigations into Goldman as part of their cross examination of the bank chief. (ANI)