Monday, 22 September 2014
Last updated 3 hours ago
May 2 2011 | 12:45pm ET
Consulting giant McKinsey & Co. has taken a beating during the Raj Rajaratnam insider-trading trial, with one former director admitting he broke the law and its former head fingered as a major source of confidential information. But McKinsey's troubles haven't—and shouldn't—taint the entire management consultancy industry, its biggest rival says.
Bain & Co. Chairman Orit Gadiesh told the Financial Times that the Boston-based company hasn't received a single inquiry from a client in the wake of the Rajaratnam case. And unlike McKinsey, which has been wringing its hands over possible new risk controls following the accusations against Anil Kumar and Rajat Gupta, Gadiesh said her firm won't be changing anything.
"When I became chairman, just for myself, I said I would never trade in stock directly anywhere in the world because I don't know where in the world we might be working," she told the FT. Gadiesh said that, in addition to her personal discretion, Bain has a strict training regimen and subjects employees to spot checks, weekly reminders and tight investment restrictions.
Kumar, a former McKinsey director, has pleaded guilty in the Rajaratnam case. Gupta, the consultancy's former head who is accused of passing tips about Goldman Sachs, on whose board he sat, has not been charged criminally but is facing an administrative action by the Securities and Exchange Commission.
Rajaratnam himself is awaiting the word of the jury as to his fate. The Galleon Group founder faces decades in prison if he is convicted.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.