Buffett: Haven’t Heard From Authorities About Galleon Probe

May 3 2010 | 12:04pm ET

In between his full-throated defense of his buddies at Goldman Sachs and his optimistic statements on the U.S. economy, Warren Buffett offered investors another bit of assurance: He hasn’t heard from the authorities about his investment in Goldman—an investment that Galleon Group founder Raj Rajaratnam was allegedly tipped off about.

At Berkshire Hathaway’s annual meeting this weekend, the Oracle of Omaha said he has not been contacted by federal investigators or the Securities and Exchange Commission, both of which are pursuing cases against Rajaratnam and others in what has been called the largest insider-trading case in U.S. history.

Last month, prosecutors told Rajaratnam’s legal team that Goldman Sachs had been added to the list of stocks he is accused of trading illegally. According to reports, former McKinsey & Co. head and outgoing Goldman director Rajat Gupta passed on word about Berkshire’s impending $5 billion investment in Goldman prior to its public announcement in September 2008.

Gupta has not been charged with, and denies, any wrongdoing.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.