Rajat Gupta, the former chief executive officer of McKinsey & Co., was sentenced to two years imprisonment for insider trading this afternoon during a hearing presided over by Judge Jed Rakoff at the U.S. Southern District courthouse.
Mr. Gupta, who was convicted in May of using his position on the board of directors at Goldman Sachs to pass privileged information to Galleon Group hedge fund manager Raj Rajaratnam, has sought probation in lieu of imprisonment. The government recommended a jail term of eight to 10 years.
“With today’s sentence, Rajat Gupta now must face the grave consequences of his crime,” said U.S. Attorney Preet Bharara in an emailed statement. “His conduct has forever tarnished a once-sterling reputation that took years to cultivate. We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta’s footsteps.”
Whither Europe: “The Spanish government has very limited financial market access,” Moody’s said in a statement yesterday to announce the ratings company had cut Spain’s grade three levels to Baaa3, one level above junk. Spain’s borrowing cost on 10-year bonds hovered near 7 percent, up from 5.1 percent at the beginning of the year. Moody’s also cut Cyprus’s grade on fears of contagion following the results of the Greece’s June 17 elections.
The downgrade didn’t prevent Spain’s Amancio Ortega, founder of retail giant Inditex, from becoming Europe’s richest person, according to the Bloomberg Billionaire Index.
“We have no sense that European partners will follow this tactic of blackmail heard from some quarters and stop funding,” Alex Tsipras, leader of Greece’s anti-bailout Syriza party told Bloomberg Television. Rather, Mr. Tsipras thinks that Greece can break the terms of the European rescue agreement signed by a previous Greek government without being forced to exit the eurozone.
Made you look!
Rajat Gupta, the former McKinsey & Co. chief executive accused of leaking corporate secrets to hedge fund manager Raj Rajaratnam, will not testify in his own defense, according to a letter sent by Mr. Gupta’s lead attorney Gary P. Naftalis to Judge Jed Rakoff yesterday:
“We have the spent the last day reviewing what Read More
Whither Europe: Spain will request European aid for its failing banks on Saturday afternoon, Reuters reports. That comes after Fitch Ratings downgraded Spanish debt three notches yesterday, and ahead of Greek elections on June 17 which could thrust European markets into crisis mode. “The government of Spain has realized the seriousness of their problem,” Read More
For anyone who’d like to see the bank executives who led America into the teeth of the financial crisis strung up by the laces of their Prada wingtips, a trip to the Southern District courthouse in Lower Manhattan may be a deflating experience.
The Observer had come to the federal courthouse seeking succor. Late last Read More