UPDATE: Blankfein Testifies At Rajaratnam Trial

Mar 23 2011 | 11:19am ET

Goldman Sachs CEO Lloyd Blankfein took the stand this morning in the Raj Rajaratnam insider-trading trial.

Blankfein was called by prosecutors to serve as a link in the alleged chain of confidential information: He is expected to testify about what former McKinsey & Co. chief Rajat Gupta heard as a member of Goldman's board; Gupta is accused by the Securities and Exchange Commission of passing some of that information on to the Galleon Group founder, often within minutes of board meetings.

Blankfein took the stand at about 10:30 this morning, after prosecutors and Rajaratnam's defense team settled their issues about the scope of questioning. Rajaratnam's lead attorney, John Dowd, said he did not plan to question Blankfein about any pending investigations of Goldman, a line that prosecutors wanted him barred from. Dowd did reserve the right to recall Blankfein as a defense witness later in the trial.

On the stand, Blankfein identified Gupta from a photograph. Gupta is expected to testify for the defense later in the trial.

Blankfein's testimony interrupts that of former Intel executive and Rajaratam friend Rajiv Goel, who began his stint on the stand yesterday. Goel testified that he passed confidential information about Intel to Rajaratnam; his testimony will resume following Blankfein's.

According to prosecutors, Gupta tipped Rajaratnam about Goldman's 2008 earnings and about a $5 billion investment in the bank by Berkshire Hathaway.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note