Probe Turns to Buffett Deal
Government Suspects Goldman Director Told Galleon of Berkshire's 2008 Investment
By SUSAN PULLIAM
Business * APRIL 23, 2010
A Goldman Sachs Group Inc. director tipped off a hedge-fund billionaire about a $5 billion investment in Goldman by Warren Buffett's Berkshire Hathaway Inc. before a public announcement of the deal at the height of the 2008 financial crisis, a person close to the situation says.
The revelation marks a significant turn in the government's case against Raj Rajaratnam, the hedge-fund titan at the center of the largest insider-trading case in a generation. Mr. Buffett's investment in Goldman in September 2008 was a watershed moment in the financial crisis. One of the world's savviest investors, Mr. Buffett helped allay fears about the instability of the financial system by backing America's leading investment bank.
The new disclosure stems from a government examination into whether the Goldman director, Rajat Gupta, gave inside information to Mr. Rajaratnam. In a court filing March 22, the government alleged that Mr. Rajaratnam or "co-conspirators" traded on non-public information about Goldman. In a filing last week, the government provided more details about the information it alleges Mr. Rajaratnam received, including advance notice about the Buffett transaction with Goldman.
the rest:
http://online.wsj.com/article/SB10001424052748703876404575200423282391104.html?mod=WSJ_hps_MIDDLETopStoriesAhhh hhhaaa haaa.....
chill_wind
Wed Sep-24-08 08:28 PM
Goldman's shares get suspicious boost pre-Buffett
By Kristina Cooke
NEW YORK, Sep. 24, 2008 (Reuters) — An unusual surge in Goldman Sachs' share price in the last 10 minutes of trading on Tuesday raised eyebrows on Wall Street, as it came two hours before news of Warren Buffett's big investment in the bank.
Goldman Sachs shares rose more than $5 heading into the close of trading even as the rest of the market tumbled, leaving traders suspicious that inside information was used to make a profit.
"Obviously someone knew the Buffett news that was coming out. I noticed it yesterday and I was telling my colleagues something is going on with Goldman," said Dave Rovelli, managing director of US Equity Trading at Canaccord Adams in New York.
Securities and Exchange Commission> spokesman John Nester declined to comment on whether the incident is being investigated. Goldman Sachs could not immediately be reached for comment.
DU thread:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4081531&mesg_id=4081531Whole thread sank like a rock that day, but I knew it dammit. And if little old me could know it was something that stunk,
you can bet the big financial media elite knew it that same day, too. It was, after all, at the very height of the meltdown and the Buffett move was a big, big story. I figured WSJ , WAPO or NYT would be all over it the next day.
I remember googling for more sources or stories for the next 24 hrs, something else to add or to reinforce the thread with more facts and there was like....
NOTHING more on it. Zip. Like it didn't happen. Our free and "independent" press. Bah! :-(