Blankfein Extends

By:


NEW YORK, March 23 (Reuters) - It was a brief, surprising, handshake between two men at opposite sides of the biggest Wall Street insider trading trial in decades.

Goldman Sachs(GS.N) Chief Executive Lloyd Blankfein extended his hand to accused hedge fund founder Raj Rajaratnam, after testifying for more than an hour on Wednesday as a government witness in Manhattan federal court.

The 30-second encounter was a show of courtesy by the head of Wall Street's most influential bank to a one-time billionaire whose firm was a Goldman (GS.N) client.

Sri Lankan-born Rajaratnam is fighting for his liberty, with a multimillion dollar defense team arguing that his stock trades were based on research or public information. Prosecutors contend he made $45 million in illegal profit from insider tips, including leaks from a former Goldman director.

Blankfein told jurors that the former board member, Rajat Gupta, breached fiduciary duties to Goldman by leaking board secrets to Rajaratnam. [ID:nN23249396]

The Brooklyn, New York-born CEO made his approach to the defense team during a break in the proceedings.

With his hand in his suit pocket, he walked up to defense lawyer John Dowd and other attorneys who were chatting with Rajaratnam. Dowd, a tall, former captain in the U.S. Marines, firmly shook the hand of the diminutive Blankfein and put his arm around him. They exchanged some words and a laugh.

Then, 56-year-old Blankfein rapidly extended his arm and quickly shook Rajaratnam's hand. They exchanged a few inaudible words, Rajaratnam smiled and Blankfein moved away.

CONTRASTS WITH CONGRESSIONAL HEARING

Blankfein's starring role at the trial was his first major public appearance since a tense congressional hearing last April, when he was blasted by lawmakers over Goldman's ethics and behavior toward clients. [ID:nLDE63R01I]

But unlike last time, the government was on Blankfein's side, using him as a key witness in its insider trading case against Rajaratnam, 53.

The CEO also appeared more calm and relaxed this time, laughing along with everyone else in the crowded courtroom when there was trouble with the sound system and when he told of his surprise about Goldman's first ever quarterly loss in the financial crisis. "We were generally making money."

Asked by prosecutor Andrew Michaelson whether Gupta violated his duties as a board member to put the interests of the company first, Blankfein said matter of factly: "My sense of it, yes."


About the Author:
http://www.brandshoes2trade.com



Article Originally Published On: http://www.articlesnatch.com


|

Loading...
Related....
Videos...

Recent Business Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.