Goldman Sachs Group Inc chief Lloyd Blankfein told jurors at Raj Rajaratnam's insider trading trial that a former director at Wall Street's most powerful bank violated boardroom confidentiality in discussions with the accused hedge fund manager.
Blankfein was called to testify by prosecutors in Manhattan federal court about Goldman's results in 2008, and a crucial investment that September by billionaire Warren Buffett at the height of the financial crisis -- secrets the government said were leaked to Rajaratnam.
His appearance on the witness stand for more than three hours intensified the focus on what is already the largest Wall Street insider trading case since the prosecution of speculator Ivan Boesky and junk bond financier Michael Milken in the 1980s.
Speaking clearly into a microphone, Goldman's chief executive officer replied "Yes" several times in response to prosecutor Andrew Michaelson's questions as to whether disclosure of boardroom talks by ex-director Rajat Gupta would violate the bank's confidentiality policies.
At the end of the morning phase of his testimony, Blankfein shook Rajaratnam's hand. Rajaratnam, 53, looked pensive while listening to Blankfein.
The CEO testified that Rajaratnam's Galleon Group had been a "prominent client" for Goldman, but he did not regularly communicate with the hedge fund.
Blankfein told jurors that Gupta also had broken Goldman confidentiality policies by telling Rajaratnam about the board's June 2008 discussion of a possible merger with Wachovia Corp or an insurance company.
Blankfein, 56, in a dark suit, white shirt and blue tie, testified to the crowded courtroom that it is important for Goldman directo
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