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Goldman Sachs Chief Blankfein may testify at insider-trading trial

June 04, 2012|By Andrew Tangel
  • Lloyd Blankfein could testify in the trial of Rajat Gupta, a former Goldman Sachs director.
Lloyd Blankfein could testify in the trial of Rajat Gupta, a former Goldman… (Bloomberg Television )

The highest-profile trial underway in New York may soon see testimony from a marquee witness: Lloyd Blankfein, chairman and chief executive of the powerful investment bank Goldman Sachs.

Blankfein could testify as early as Monday in the insider-trading trial of former Goldman director Rajat Gupta, who is accused of illegally passing secret company information to hedge fund manager Raj Rajaratnam.

Rajaratnam, who ran a vast insider-trading network as head of the Galleon Group, was sentenced to 11 years in prison following his own trial last year. Blankfein took the stand at Rajaratnam's trial year.

Federal prosecutors have accused Gupta, among other crimes, of tipping off Rajaratnam to Warren Buffett's infusion of $5 billion into Goldman at the height of the 2008-09 financial crisis.

Gupta's trial is scheduled to end by mid-June. Blankfein may testify Monday or Wednesday, according to a tentative witness list distributed by the court.

Anil Kumar, who along with Gupta was a top executive at consulting firm McKinsey & Co., was scheduled to continue testifying Monday morning.

Ajit Jain, who some see as a potential successor to Buffett at Berkshire Hathaway, is slated to testify later via videotape for the defense. 

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