Lloyd Blankfein, the embattled CEO of Goldman Sachs, testified for the prosecution today in Raj Rajaratnam's insider trading trial. The issue is whether Goldman Sachs board member Rajiv Gupta told Rajaratnam confidential information regarding the $5 billion capital infusion from Warren Buffet, which saved Goldman Sach's and information regarding Goldman Sach's acquisition of a commercial bank or insurance company. The government has a tape of a conversation between Gupta and Rajaratnam regarding these issues.
Rajaratnam, whose hedge fund, Galleon Trading, made about $45 million as the economy was crashing, has stated that his trades were made based on publicly available information. The trial will conclude in about two months.
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