Saturday, 28 March 2015
Last updated 15 hours ago
Jul 11 2011 | 11:06am ET
A top McKinsey & Co. executive said it could take decades to undo the damage done to the consulting giant by the Galleon Group insider-trading scandal.
Dominic Barton, the firm's global managing director, called the case, which has seen one former partner plead guilty to tipping Galleon founder Raj Rajaratnam and the firm's former head accused of doing so, "incredibly distressing and embarrassing."
"I feel like some turpentine was thrown on the hood of the car," Barton told the Financial Times. But he said it was too soon to know how much lasting damage had been done to McKinsey's brand.
"I wish I could say it changed next week or in six months," he said. "I really think it will be in the 10 to 20 year time frame we'll know."
Barton said that McKinsey is actively working to implement changes to prevent a re-run of the Galleon mess and to boost its internal controls.
"We're looking at what people will say in McKinsey 20 years from now about how this generation responded," he told the FT.
Despite the turmoil, Barton said that clients have been supportive of the firm and that the scandal "hasn't affected our work at all."
Anil Kumar, a former partner at McKinsey, pleaded guilty to passing confidential information to Rajaratnam. He repeated those accusations on that stand during Rajaratnam's trial, helping convict his former business school friend. Meanwhile, the Securities and Exchange Commission's lawsuit against former McKinsey chief and Rajaratnam business partner Rajat Gupta has been postponed as prosecutors look further into Gupta. Gupta is accused of passing information about Goldman Sachs, on whose board he served, to Rajaratnam.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…