2ndlook

Rajat Gupta – Take-Down-of-Indians Pattern Continues

Posted in America, Business, Desert Bloc, India, politics by Anuraag Sanghi on June 15, 2012

How come never wire-taps were allowed in insider trading cases? Why only against Rajarathnam and Rajat Gupta?

Many in the US Senate and Congress are suspected of insider trading - but enjoy legal immunity  |  Cartoonist Chuck Asay in 2012  |  Click for image.

Many in the US Senate and Congress are suspected of insider trading – but enjoy legal immunity | Cartoonist Chuck Asay in 2012 | Click for image.

Rajat Gupta, 63, denied illegally leaking boardroom secrets to Raj Rajaratnam, a former hedge fund manager now serving 11 years in prison.defence lawyers told the jury that the use of phone records and FBI wiretaps only created the illusion of illegal business activities.

“That is a gambit that can bamboozle people into thinking something was proven when it wasn’t,” defence lawyer Gary Naftalis said.

The trial focused on a phone call made to Rajaratnam on 23 September 2008, minutes after Gupta had listened to a private conference call discussing a $5bn (£3.2bn) investment in Goldman Sachs by Warren Buffett’s company Berkshire Hathaway. The deal would be made public after stock markets closed that day.

According to phone records, Rajaratnam bought $40m in Goldman Sachs stock moments after the phone call, earning nearly $1m. (via BBC News – Ex-Goldman Sachs director Rajat Gupta guilty of fraud).

How come never wire-taps were allowed in insider trading cases? Why only against Rajarathnam and Rajat Gupta?

Was it a huge fraud? Even if the State case is true, the amount was in a few piffling millions – unlike the Boesky.

Ivan F. Boesky, once among the financial world’s most powerful speculators and now a symbol of Wall Street’s excesses, was sentenced yesterday to three years in prison for conspiring to file false stock trading records.

The three-year term is the third longest to have been imposed in a case related to insider trading. Mr. Boesky had faced a maximum penalty of five years in jail and a $250,000 fine.

A year ago, Mr. Boesky settled civil insider trading charges, paying a record $100 million. He had been charged with illegally earning more than $50 million by trading with inside information he bought from Dennis B. Levine, a former investment banker who pleaded guilty to criminal charges earlier and is now in prison. Mr. Boesky subsequently disclosed that he additionally earned more than $30 million by illegally trading with inside information sold to him for $700,000 by Martin A. Siegel, once one of Wall Street’s top corporate merger specialists. Mr. Siegel has pleaded guilty to criminal charges and is awaiting sentencing.

Last April, Mr. Boesky pleaded guilty to the single felony count, at that time one of the most important devel-opments in the widening Wall Street insider trading scandal. Mr. Boesky pleaded guilty to conspiring to file false documents in regard to a scheme in which he helped the corporate raider Victor Posner take over the Fischbach Corporation by buying stock in the company.

Mr. Boesky was unlikely to serve more than two years of his term, though. According to the standard guidelines that govern prison sentences. (via BOESKY SENTENCED TO 3 YEARS IN JAIL IN INSIDER SCANDAL – New York Times).

And if, you thought this was bad, look at what followed.

Michael Milken pleaded guilty to six felonies and agreed to put up $600 million, $200 million of that in fines, to settle the biggest fraud case in the history of the securities industry.

Mr. Milken’s public admission ends four years of obdurate denial of wrongdoing, virtually assures a prison term and opens the possibility of further fraud prosecutions.

The six felonies to which he pleaded guilty are serious yet technical securities violations and did not directly enrich him. His lawyer has even characterized them as an overzealous attempt to help friends.

The plea bargain allows theft to be cloaked as misguided loyalty.
The plea bargain reinforces another misconception. In his statement to the court, Mr. Milken explained that his ”business was in no way dependent on these practices. Nor did they comprise a fundamental part of our business.” That claim is, at best, a self-serving half-truth.

Opportunities to cheat clients, the Internal Revenue Service and regulators were numerous and lucrative. Drexel, for example, would lend money to investors who were buying stocks based on the predicted outcome of deals that Drexel itself was arranging. (via Michael Milken’s Guilt – New York Times).

Now these were cases that were ‘open’ secrets. Everyone knew these guys were brazenly flouting basic norms of professional etiquette – and should be disbarred from Wall Street.

Legally, any action against Boesky or Milliken was possible – short of a death sentence.

Did Rajat Gupta know that  this how insider-trading cases ae settled?  |  A Carol Simpson cartoon from 2003  |  Click for image.

Did Rajat Gupta know that this how insider-trading cases ae settled? | A Carol Simpson cartoon from 2003 | Click for image.

After fraud and illegal earnings in hundreds-of-millions, they served a few years in jail – and resurrected Michael Milken, ‘it seems, has made the classic American transformation from despised villain to “controversial” figure.’

Rajarathnam crime.

Two big ones.

SEC wanted Rajarathnam to squeal on and implicate his brother Renjit. He refused. Secondly, apparently, he never banged his head at the altar of the American Dream.

Ditto for Rajat Gupta.

Forbes, had one article that summed up the case very well.

Zilch.

That was evidence, that could put away Rajat Gupta for life.

Gary Naftalis, Rajat Gupta’s lawyer asked, “Where’s the beef?” referring to the government’s lack of evidence. Unlike other insider cases, Neftalis has a point.

While the circumstantial evidence against Gupta is strong, there was no concrete evidence, a recorded conversation, that put Gupta on the phone with Raj Rajaratnam passing inside information. Sure there was the call in 2008 that Gupta placed to Rajaratnam after a Goldman Sachs board meeting and minutes later Raj placed a large order for Goldman stock ahead of the announcement of Warren Buffett‘s $5 billion investment in the investment bank.

Granted, it does not look good, but is it enough to persuade a jury?

Galleon hedge fund trader, Rajaratnam was convicted last year of receiving insider information from various sources, some of whom were caught on FBI surveillance (tape) speaking directly with him about the confidential information. The government was actively taping many of Rajaratnam’s calls, so why don’t they have Gupta saying, “Here is some confidential information for you to trade on.”?

Who knows, but they do have other people on tape saying just that, and that person is not even on trial.

Goldman Sach’s David Loeb, who is still employed by the firm, was caught on phone calls tapped by the FBI passing inside information to Rajaratnam about Intel and Apple, both publicly traded stocks. Those tapes, Gupta’s lawyers argued, show that Rajaratnam had multiple sources of inside information, including others at Goldman besides Gupta.

However, U.S. District Judge Jed Rakoff sided with the prosecution that such evidence was hearsay and not directly a part of this case. The jury never heard the tape. Loeb has not been charged, but if I were him I would be sleeping with one eye open.

Another piece of information that the jury will not hear is that Rajat Gupta (63) could spend the remainder of his life in prison if he is found guilty. The jury must decide guilt or innocence, but they will have no idea that the penalty they could be giving Gupta because that is not allowed.

There is no real “DNA”, a wire tape, that proves Gupta passed inside information to Rajaratnam. It does not exist, but the circumstantial evidence is powerful …. but that does not mean Gupta is guilty.

Last weekend, we learned that Commerce Secretary John Bryson was involved in a traffic accident where he left the scene, proceeded to drive along further and ran into another vehicle. Immediately the press wondered if there were alcohol and drugs involved with Bryson’s accident(s).

The real story that Bryson had suffered a seizure leading to the accidents. How quick we judge.

If this jury convicts Gupta, it is because they believed he had a close relationship with Rajaratnam and not that they had irrefutable evidence. Is that worthy of a life sentence? We will see.

via Rajat Gupta Case – It’s All Circumstantial – Forbes.

In case of Anand Jon, it is amazing how a murder accused, Phil Spector, was Juror No.6, of the jury that found Anand Jon guilty. While the Phil Spector murder case went on for nearly a decade. Anand Jon’s case that started after Spector’s crime, has completed quite a few years in prison.

Phil Spector, the rock music impresario behind hits like “Da Doo Ron Ron,” and “You’ve Lost that Lovin’ Feeling,” was convicted Monday of murdering a struggling actress at his mansion in 2003 after a night of drinking.

Mr. Spector, 68, faces at least 18 years in prison. The jury, ending a five-month trial, reached its decision after 27 hours of deliberating This was the second murder trial in the case; the first ended in a hung jury in 2007. Mr. Spector has been out on bail for most of the last six years, but was immediately taken into custody after the verdict on Monday.

Lana Clarkson, who was 40, starred in a 1985 cult hit, “Barbarian Queen,” and had a bit part in “Fast Times at Ridgemont High” in 1982.

She was working as a hostess at the House of Blues on the Sunset Strip when Mr. Spector visited, struck up a conversation and took her out drinking.

They finished the night at his mansion, known as the Castle, but, when she spurned his advances and tried to leave, he shoved a gun in her mouth and pulled the trigger, prosecutors said.

The prosecutors argued that this fit a pattern of Mr. Spector’s drinking and threatening women with guns over decades. (via Phil Spector Found Guilty of Killing Actress – NYTimes.com).

Anand Jon never pulled a gun, to force wannabe-models to have sex. He got more than 50 years in prison. Phil Spector gets less than half.

Anand Jon was a Brown Indian – a segment of people who Uncle Sam wants to cow down and make subservient and submissive.

Unlike Rajat Gupta. Rajarathnam. Or Vikram Budhi.

These people may be guilty as hell – but they had a lot more grace and character under pressure.

Unlike many others, who hiding in their rat-holes.


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22 Responses

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  1. admin said, on June 15, 2012 at 7:58 pm

    • RK Sharma said, on June 20, 2012 at 8:11 pm

      I listened to Mr. Gupta twice in my life, after listening to him i was pretty impressed, but i feel sorry for him, even a small person like me who has worked in small roles like Analyst/Project Manager knows that in USA system is tough and there is no mercy. Whosoever you will speak to may back stab you at any time in life, God knows why he didn’t settled at Administrative level or civil charges, People have big ego and these departments have infinite power, he should have spoken to some other Indian lawyers in Newyork city just for understanding strategy sold to him by his ultra rich lawyers, they just made scapegoat out of him, even if he had done some wrong in weak moment he should have prayed and payed penalty at civil level. Even now he should go to some American woman lawyer, and Indian lawyer for second opinion as what best can be done. Social dynamics is very complex in USA just like any other culture, India may have thousands of problems but still i feel there is some mercy if one cries and fold hands before other person, not in USA, here once they are after you, they make sure you are over. Another angle is technically person who was after him is also from India, sometimes big people don’t understand how one Indian hates another. People won’t agree to me but he should have really spoken to some other people before doing what he has done. This is really a sad story and teaches how everyone leaves you in bad times.

      • Anuraag Sanghi said, on June 20, 2012 at 10:05 pm

        @Sharmaji

        Let us: –

        1 Assume that I know Rajat Gupta.

        2. Assume that Rajat Gupta is a very obnoxious and arrogant man.

        3. Assume that Rajat Gupta is very rich and very well connected and very powerful

        4. Assume is ill-mannered and rude

        5. Assume that Rajat Gupta has rubbed some people the wrong way

        Does it mean that I should not be bothered about people who are going to be in jail – for one second longer than the minimum that the ‘system’ imposes.

        Given a choice I will nuke all these jails.

        This entire point about him good /bad /ugly /impressive /powerful /rich /poor / tall /thin /fat /fair /dark are meaningless. I cannot see one good reason for

        – Rajat Gupta and

        – Rajarathnam, Alexander Jon, Vikram Buddhi plus atleast another 1.8 million prisoners

        – To be in the world’s largest prison system

        – Manned by the world’s largest police force

        – Controlled by the world’s largest secret police

        That works in the Land of the Free and Home of the Brave.

        The Leader of the Free World.

        How should Rajat Gupta have handled this case?

        I dont know. There are people who know better than me.

        But I like your thoughts. It is very jugaadu, Indian way of thinking. You have given it more thought than I have.

        Tomorrow, if I need help, may be I can call on you.

        But remember, most probably, I will be guilty of whatever crime people may allege, I am going to be poor, and I am obnoxious, rude and arrogant. Who would want to help me?

        Maybe, I should simply go to jail;. Best place for poor, obnoxious, rude and arrogant people like me!

        What to do?

        I am like that onlee.

  2. Lila Rajiva said, on June 15, 2012 at 9:15 pm

    Thank you. I am blogging about this too http://www.mindbodypolitic.com
    I hope you will stop by and read and pass on the information.

  3. […] Indian blogger notes how trivial Gupta’s alleged crimes were next to what Boesky and Milken […]

  4. A Fan of Your Blog said, on June 16, 2012 at 3:07 pm

    Check this link out.

    1. So you don’t think what Mr. Gupta did was wrong?
    2. So 3 or 4 Indians are targeted and suddenly its a trend and a conspiracy? There are a few million Indians living in the US. Are they all being targeted? A majority of them? A statistically significant number?
    3. Just because our Indian court system is very slow and sab kuch chalta hain, should US courts also tread lightly and not bring the wrong-doers to justice?

    Why this persecution complex? Just because they are Indian?

    Have you met Mr. Gupta? How much do you really know about him?

    • Anuraag Sanghi said, on June 16, 2012 at 6:19 pm

      @AFOYB –

      Thanks for another comment with assertions, without data, without facts.

      you don’t think what Mr. Gupta did was wrong

      You have two respected Western magazines, Forbes and Economist, who have clearly mentioned, in case you have read (I am sure you have not), that the evidence against Rajat Gupta is purely circumstantial.

      Circumstantial evidence means – Things that look bad – but could have a hundred innocent explanations, apart from the guilty explanation that the prosecution is pushing.

      In spite of the prosecution’s best efforts, they actually have no trades, no wire-taps, no recordings, no payments, no receipts, no money trails, that can implicate Rajat Gupta.

      What they have is a fact that Rajat Gupta telephoned Rajarathnam, within one minute after a board meeting of Goldman Sachs.

      So?

      Guilty of insider trading?

      Maybe they were talking about the slim (or slick) sex-lives that they had.

      Read the stuff before you get into an argument.

      So 3 or 4 Indians are targeted and suddenly its a trend and a conspiracy? There are a few million Indians living in the US. Are they all being targeted? A majority of them? A statistically significant number?

      You mean to say wait till a statistically significant percentage of people are in prison – when anyway you can do little. Like an earlier post mentioned, where today one in three African Americans, go to prison. When the entire system is loaded against them.

      You mean to say, you expect the Establishment to put out newspaper advertisements declaring War On Injuns.

      I am certain, you have not read up on the Anand Jon and Phil Spector case.

      Just because our Indian court system is very slow and sab kuch chalta hain, should US courts also tread lightly and not bring the wrong-doers to justice?

      Maybe you are right here. In India, sub kuch chalta hai – things work here. Where as in Yumm-Rika, it is maya. You should compare Yumm-Rika and Pakistan. Blood brothers of different color. More on this a few paragraphs down.

      OK. But, this is interesting.

      A 2ndlook reader landed up in Mumbai – and we met.

      An American of Indian origin, apparently successful in US. He has a high opinion of Yumm-Rika and not surprisingly, low opinion of India. He could have had his surgical procedure done in the US. At no cost. Covered by insurance, MedicAid. MediCare or whatever. But he flew down to India, and paid for his surgery – which would have cost him (tickets+hospitals) about Rs.100,000.

      His explanation – paraphrased by me.

      Things work in the US – and everyone and everything is a system. You get caught in it, there is no way out. In India, according to him, the system /people respond. So, he felt, medically, he would be in be a more responsive system – though maybe more expensive.

      Like that orphan-woman – Kairi Shepherd, adopted 30 years ago from India. Some stupid legality, and US law says deport her. She was a 3-month (or so) old orphan – adopted and taken to the US. Her adoption formalities have not been completed – and hence, she is not a US citizen, 30 years later.

      Yummrika works. Oh, yes, it does. Blindly. Stupidly. Like a machine.

      And all these glorious Yumm-rikans of Indian origin. They wait for India to bail their sorry asses out. Like this Kairi Shepherd case. SM Krishna is pleading her case with Hillary Clinton now. How many glorious NRIs have taken up this issue? If you guys are so advanced, so much better, so much more successful than we backward desis, take care of your own.

      You have advice for us? Keep it. Get your house in order. Take care of your own. Let us talk after that.

      Coming to crime /justice /law & order in Indian society. Like I have pointed out earlier, India has

      – Lesser crime
      – Less police
      – Fewer courts
      – Many guns in the hands of the poor
      – Least number of prisoners

      in the world. Compared to any society which is more than 10 million in size.

      If you cant see the logic of this system, we are both wasting time.

      The Great Yumm-Rikan system ensures that violence in US exceeds levels of Pakistan – which today the world agrees is a dysfunctional state.

      Why this persecution complex? Just because they are Indian?

      Have you met Mr. Gupta? How much do you really know about him?

      Irrelevant.

      Are you trying to argue (not interested) or understand, discuss (change your tone and approach)?

  5. arak99 said, on June 16, 2012 at 11:12 pm

    Anurag,

    Why don’t you look at all the yumrikan accused you mentioned in this article and research if they all belong to the same group. You may be surprised by the outcome of your research, which might force you to rewrite some of your earlier articles.

    • Anuraag Sanghi said, on June 17, 2012 at 9:24 am
      @arak99

      You may be surprised by the outcome of your research, which might force you to rewrite some of your earlier articles.

      I am not rejecting it. I will even accept it.

      If you can show with your research that my case is inadequate. I am willing to rewrite /write my posts – if you have any contrary evidence. Don’t just let it hang there. If you have anything specific, bring it on board. You accuse me of lack of research.

      If you read carefully, I am going with the general drift on what’s reported.

      – Rajat Gupta implicated on circumstantial evidence. Terrible miscarriage of justice – unless the judge is learned, not impressed with public opinion. If the judge sentences, Rajat Gupta for say (30 days imprisonment), I would say that the American system redeems itself – at times.

      – Rajarathinam case – Compare with the precedents on Boesky and Milliken cases. I mean, I followed those cases – and cut my teeth on them. Can there be a comparison? How can Rajarathinam be persecuted like this – in the land of Boesky and Milliken?

      – How can Alexander Jon be put behind bars for sex – in the fashion industry? In the fashion, music, film industry, going by published data, this a basic given. Yet, no one has been put behind bars. Why Alexander Jon. Have you read on Phil Spector, (linked in the post) who murdered an unwilling actress – and he does jury duty in Alexander Jon case?

      – Worst is the Vikram Buddhi case. Do you put a guy behind bars for saying Death To George Bush?

  6. A Fan of Your Blog said, on June 17, 2012 at 12:42 am

    “Things work in the US – and everyone and everything is a system. You get caught in it, there is no way out. In India, according to him, the system /people respond. So, he felt, medically, he would be in be a more responsive system – though maybe more expensive.”

    Sorry. That’s a crock. To each his own. I work in this field. Not buying it.

    “And all these glorious Yumm-rikans of Indian origin. They wait for India to bail their sorry asses out.”

    Bail out sorry asses?? Haha. Funny. How many Indians live abroad? And how many sorry asses have been bailed out? Whatever. If such kind of thinking gives you a feeling of superiority, then I congratulate you. Enjoy that feeling.

    “How many glorious NRIs have taken up this issue? If you guys are so advanced, so much better, so much more successful than we backward desis, take care of your own.”

    Why can’t you take care of your own? That’s like saying, “There are so many hungry kids in India. Why can’t you take care of your own?” You see, NRIs are not a cohesive group. They have different affiliations, live in different areas of the world, and have different perspectives. There is no “your own”. Indians did not go abroad en masse on a mission. Each went at a different time, with a different objective, and have done different things with their lives. Much like Indians who live in India. Indians abroad are no different.

    Also, I have never called you “a backward desi”. To me, we are all Indians. Where I live does not matter to me, and should not matter to you either. So stop the crock.

    Coming back to the Rajat Gupta case, have you heard this recording? Do you still think this is only circumstantial evidence? He was convicted by a jury, who thought the evidence is conclusive. Mr. Gupta is a rich man, very powerful, and has access to the best lawyers in the world. This is just one recording. How do you know there were not several more? Listen to what these gentlemen are discussing. Does it seem like Mr. Gupta is holding back a lot of insider info?
    [audio src="http://en.wikipedia.org/wiki/File:GalleonWiretap_RajatGupta-RajRajaratnam.ogg" /]
    http://business.time.com/2012/06/15/rajat-gupta-jury-queries-conspiracy-as-evidence-is-called-circumstantial/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+time%2Fbusiness+%28TIME%3A+Top+Business+Stories%29

    The reason I asked you whether you knew Mr. Gupta personally or have met him is not to patronize you. I asked because I have met him a few times. Anyway, I will not share anything more on that, since you are not interested.

    • Anuraag Sanghi said, on June 17, 2012 at 9:09 am
      @AFOYB

      Describing other viewpoints as crock (of #@*#) is basically disrespect. Other viewpoints deserve as much respect as you expect.

      Coming to your ‘data’. The first link says more of what I am saying. You have not read the post carefully.

      As the jurors deliberated, the key question became whether the evidence — described by some observers as circumstantial — would be enough to convict the 63-year-old former chief of consulting titan McKinsey & Co. It was. The prosecution surmounted its lack of a smoking-gun phone-recording of Gupta delivering inside information for his own benefit to billionaire friend Raj Rajaratnan.

      Gupta’s defense, led by prominent attorney Gary P. Naftalis, maintained the prosecution’s case was circumstantial, insisting there was “zero” evidence that Gupta profited from insider trading. On this score, the defense had a point.

      Although the government presented evidence that Gupta called Rajaratnam just moments after learning about the Buffett investment, it lacked a bonafide smoking gun — in the form of a recorded conversation — that would have made the case a slam-dunk. This despite the fact that the government had built a treasure-trove of wire-taps from the 2011 Rajaratnam trial and other related insider trading cases. But it was enough for the jury.

      What the government did present, to damning effect, it turns out, was a record — not a recording — of a Sept. 23, 2008 phone call that Gupta allegedly made to Rajaratnam only minutes after a confidential conference call during which Gupta learned about Buffet’s $5 billion investment.

      Then there was a 2008 call during which Rajaratnam told one of his traders that he had received a tip “from someone who’s on the board of Goldman Sachs” that Goldman was facing an unexpected quarterly loss.

      What the prosecution didn’t seem to show is that Gupta actually benefited materially from this insider chatter. If anything, it was the other way around. (via Fallen Icon: Former Goldman Sachs Director Rajat Gupta Found Guilty on 3 Insider Trading Counts and Conspiracy | Business | TIME.com(text edited for brevity; emphasis supplied).

      More important than this post, was another link that was embedded. This post talks of how weak this entire prosecution is.

      So Rajat K. Gupta, the ex boss of McKinsey & Co. and a former Goldman Sachs board member, was arrested today, and charged with being a friend of hedge fund bigshot Raj Rajaratnam.

      What did Gupta gain from this? Nothing. Nothing but grief, anyway. As Gupta’s lawyer Gary Naftalis points out, “he did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.” The feds say that’s baloney

      The feds say that’s baloney, that Gupta profited because he was invested in Galleon’s funds. (Yeah, says Naftalis, and lost $10 million doing so.) The feds also say that his info allowed Galleon to avoid a $23 million loss on Goldman’s stock while Galleon’s traders generated profits of “over $570,000” on P&G. Wow, that much for a multibillion dollar trading operation. You call that a tip?

      Which is going to lead to questions, as it did in the Rajaratnam case, of what constitutes insider trading? If you’re chatting with your buddy who works for Apple and she tells you she likes what she sees, does that make you a criminal for piling into the stock? Conversely, if your buddy happens to be in charge of a hedge fund, and you work for Apple and you tell him what you’ve been up to and he piles into the stock, are you a criminal? If the FBI is listening in, maybe.

      Insider trading has always been a moving target, but U.S. attorney Preet Bharara has nailed more than 50 people during an investigation that began with one case. It’s classic, start –with- the- small- fish and move up law enforcement, but it is also raising some issues about overcriminalization.

      One of the broader legal issues, says Heritage Foundation legal scholar Paul J. Larkin, Jr, a former Justice Department attorney, “is that you take one discrete type of conduct and make it a crime under multiple statutes. It’s a serious question that we are only starting to debate.”

      There is a school of thought, often tied to the University of Chicago, which says that all information, inside or not, is beneficial to the market. So let it be. Others argue that insider trading is an abuse of privilege that should remain illegal. But now that the heavy artillery of U.S. Attorney’s office has been brought to bear, the potential outcomes of these cases have changed to an extraordinary degree.

      Gupta could do hard time for blabbing to a buddy. Will that prospect, and Bharara’s breakthrough access to wire tapping, make insider trading go away? Of course not. But if a guy like Gupta loses, you can expect the Street to lean very heavily on its pals in Washington to redefine the law. Because if this is a crime, then there are likely more criminals than not on Wall Street. But you were thinking that anyway. (via If Rajat Gupta Is An Inside Trader Maybe You Are, Too | Business | TIME.com).

      On your bot about jury-conviction.

      He was convicted by a jury, who thought the evidence is conclusive.

      The jury system, especially on what is insider trading, is bad standard. Juries are a bunch of amateurs – another word for a lynch mob. I am going to need better opinion than jury opinion.

      The other point is about Rajat Gupta’s status.

      Mr. Gupta is a rich man, very powerful, and has access to the best lawyers in the world.

      So?

      So, what? How is this relevant.

      This is just one recording. How do you know there were not several more? Listen to what these gentlemen are discussing. Does it seem like Mr. Gupta is holding back a lot of insider info?

      I will rely on professionals who have decades on experience on this. They are saying that there is no such recording. At least not to anyone, who regularly writes and reports on this stuff. Like Forbes, Economist, Time.

      Unless you are talking of this.

      A wiretap of a July 2008 phone call during which Rajaratnam asked Gupta whether the Goldman board was considering buying a struggling bank — a move that could have had a huge impact of the bank’s stock price. “Have you heard anything along that line?” Rajaratnam asked Gupta. “Yeah,” Gupta responded. “This was a big discussion at the board meeting.” (via Fallen Icon: Former Goldman Sachs Director Rajat Gupta Found Guilty on 3 Insider Trading Counts and Conspiracy | Business | TIME.com).

      I rarely listen or watch any audio-video recordings at all. Too time consuming. When I can read in 1/10 the time why listen. If you have a reliable transcript, please present. I cant be listening to some Wikipedia *.ogg recordings.

      Why can’t you take care of your own? That’s like saying, “There are so many hungry kids in India. Why can’t you take care of your own?”

      Yes it is. And we are doing it. Famines that were common during the Great British Raj are unknown now, in India. Pls read on the US$100 billion subsidy to Western farmers.

      Also, I have never called you “a backward desi”. To me, we are all Indians. Where I live does not matter to me, and should not matter to you either. So stop the crock.

      Are you sure you didn’t imply this? When you compared the US justice system and the Indian delivery system.Any third party reader will probably agree with me. But anywez …

      I personally dont mind this. There are areas where India needs to compete technologically. We always don’t need to have all the technology. But some if it, yes.

      I note you have made no acknowledgement of the Alexander Jon /Phil Spector case; of the data on Indian criminal situation.

    • Anuraag Sanghi said, on June 20, 2012 at 9:25 pm

      AFOYB – There are two people from the US who are have something to add on this.

      One is Lila Rajiva – who reblogged my post on her own blog. If you look at her blogs closely, she has been writing on the US Financial industry for longer than I have. With two books published to her credit. You can check out what she says. (linked above).

      More importantly, in a different contexts is Rajiv Malhotra – who has been working for more than 10 years now, on how the US education system and the academia represents India and Hinduism.

      Lila Rajiva I came to know of, when she commented on my post.

      Rajiv Malhotra is better known – but again is someone I have not read regularly, preoccupation being a safe excuse that I can trot out.

      His comment (click here to go to original).

      Most Hindus deny the existence of Hinduphobia, and many interpret the episodes that are pointed out as positive markers of their tolerance. Since many NRIs feel lucky to be able to enjoy lifestyles which their parents lacked, they do not wish to rock the boat. Hence, they prefer to hide their Hindu shame behind complicity or outright support of Hinduphobia.

      In this regard, Hindus are very different from all other American minority groups. The overwhelming majority of Jews, Muslims, Buddhists, blacks, gays, Hispanics, etc., publicly claim their identities with pride and they protest when falsely stereotyped. In doing so, these other groups enhance America as a powerful multicultural society, a responsibility that Indians have yet to understand because of the vast differences between the nature of Indian and American approaches to secularism: While Americans publicly celebrate their many distinct religious identities, Indians were raised after independence to fear distinctions based on religion, seeing distinction as a cause of conflict because such conflicts were exploited by the colonial masters.

      I was undecided on including this following extract from Rajiv Malhotra’s post. On 2ndthoughts, I will.

      I came across the Indian-American author, Richard Crasta, I had believed that such prejudices were being caused mainly by Westerners. However, Crasta explains that these biases are amplified by a mindset that afflicts many Indians because of their own inferiority complexes. In his provocative book, “Impressing the Whites: The New International Slavery,” he writes that “ethnic shame is a phenomenon that is particularly intense among Indians abroad and particularly those in the U.S. and U.K… Ethnic shame is the opposite of ethnic pride…”

      Crasta goes on to explain the role of certain well-known US-based organizations in cultivating this Indian identity shame and Hinduphobia:

      “Indeed, many of these immigrants are so terrified of voices that may offend the Masters that they will themselves act as filtering devices, as local policemen of thoughts. Organizations like the Asia Society, South Asian Journalists Association (SAJA), and many ethnic newspapers regularly act as cheerleaders for those Indians who have impressed the whites, and as bouncers to keep their scruffy and impolite brethren from disrupting the harmony: on one occasion even trying to drop a ‘trouble-making’ Indian author from the program at the Asia Society.”

      Once I became open to examining Richard Crasta’s perspective several years ago, I started to examine the evidence carefully and realized that his courageous thesis had merit. He shows that Hinduphobia is often a subconscious conditioning of Indians: “The carrot and stick are so discreetly transferred by Third World writers onto their internal censor that they are often unconscious of their own self-censorship.” Ironically, this coterie of self-alienated Indians is being deployed by the academic/media establishment to attack the dissenting voices. Might Mr. Vedantam be an unwitting victim of this malaise?

      Furthermore, the system has created career incentives to encourage Indian journalists into cultural self-castration. SAJA gives Mr. Vedantam importance partly because of his affiliation with the Post, as this helps to legitimize SAJA in the eyes of young journalists looking for media contacts and jobs. Mr. Vedantam, in turn, consults SAJA friends and adopts their biases, such as the biases reflected in his article, and so becomes a hero for them. Like any system built on power, it is a closed and self-sustaining system to control the information channels and to perpetuate itself.

      After her New York trip with SAJA journalists, Tavleen Singh wrote an excellent analysis of Indian journalists’ inability to interpret India, much less to be able to predict future trends. She explained how these Indian journalists often have serious blind-spots in their understanding of India. Because Western and often Indian media looks at SAJA as a credible source for referrals, SAJA’s new leaders should do some introspection.

      SAJA’s tilts on content/framing and on who gets the awards and various speaker spots are a projection of the systemic biases, often unconsciously applied. The trend has been to pander to the Celia Duggers and Barbara Crossettes of the media world as credible authorities on India, even though they tend to be unimportant in the mainstream American media and have poor educational backgrounds on India.

  7. A Fan of Your Blog said, on June 21, 2012 at 3:51 pm

    Anuraag — I have read your last post and I agree with them. Indians in the US suffer from some of the same biases and complexes that Indians living in Indian cities face. A lot of them have complexes about their “inferior” country with lots of poor people, and their colonial past. They do look to please their white masters. We are doomed to “modernize”. 🙂

    Most of the people (whether in India or USA or anywhere else) are ignorant. Their views are based on the here and the now. I believe a lot of problems have to do with such a short term outlook.

    • Dr Van Nostrand said, on May 19, 2013 at 5:17 pm

      The semi literate acolyte has spoken!

      I doubt you have travelled anywhere beyond the suburbs of your hometown which may be one of the large metros in India.

      Otherwise you wont spew such nonsense and use words like “colonial” and “white masters”.

      I lived ,studied and worked in U.S The only “white master” I had was my boss who FYI was far more fair and reasonable than any Indian bosses I had. Take a quick poll of which bosses Indians working abroad prefer-white or desi? The answer will shake your soul LOL

      Most Americans see India as a hell hole . And most Indians working there agree in practice,if not principle, otherwise why would they be in America?

      I think the most painful realization for your types is not that America hates hates hates India due to our awesomeness in whatever, but Americans are by and large indifferent to India as they are with most countries.

      Truth of the matter is we need them more than they need us and this rankles you

      Hey I dont like it either but they earned their power, we like beggars keep hoping someone will hand it to us as we have been handed over jobs in tech and other fields.

      • manu said, on May 20, 2013 at 3:15 am

        Americans are by and large indifferent to India as they are with most countries Yes true the known instances of American indifference have been seen in Korea , Vietnam, Afghanistan , Iraq, Libya and now Syria.. God knows how many unknown instances are there of the Greatest Country in the world ever LOL

        • Dr Van Nostrand said, on May 20, 2013 at 9:25 am

          What is your point? When did I state that Americans are indifferent to all those countries you mentioned?
          Your post is a classic case of a fool trying to be clever and looking more like a fool than before!

          • manu said, on May 21, 2013 at 2:26 am

            Dude I was quoting you here

            “Americans are by and large indifferent to India as they are with most countries”

            Read what you wrote before you shoot …

            • manu said, on May 21, 2013 at 3:07 am

              My bad I didn’t realise most doesn’t include the known indifferences …Lets keep this ever growing list open for future.

  8. admin said, on June 22, 2012 at 5:25 pm

  9. […] Rajat Gupta – Take-Down-of-Indians Pattern Continues (2ndlook.wordpress.com) […]

  10. admin said, on May 18, 2013 at 5:47 am

  11. Dr Van Nostrand said, on May 19, 2013 at 5:10 pm

    Enough of this nonsense.

    Rajat Gupta had the right to be considered innocent until proven guilty

    And so does America of the taint of racism

    I dont think you have actually lived there and noticed how people walk on egg shells so they would not be considered racists.

    Also Rajarathnam was Sri Lankan Tamil who had nothing to do with India

    It is possible that they were caught because they were knuckleheaded about their insider trading.

    In a situation like that, it is time for cover their ass. The WASP and Jewish traders and fundmanagers were simply much better at it.

    Seriously easy with the racism stuff!

    The notion of taking down Rajat Gupta and Rajarathnam just to bloody India’s financial nose is laughable.

    Dude, seriously get a grip


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