Gateway House interviews Anita Raghavan, the author of ‘The Billionaire’s Apprentice,’ to discuss the fall of the Galleon Hedge Fund and the conviction of Rajat Gupta in 2012, its impact on the Wall Street, and especially, its repercussions for the Indian-American community.
Rajat Gupta, former chief of McKinsey & Co., was sentenced to two years in jail for insider trading and a fine of $5 million. Whether that will send a deterrent message to corporate boardrooms, which prosecutors claim, is unclear.
Front running is a form of insider trading, where investment banks use customers' trading information to trade for themselves, ahead of their clients. This practise results in huge losses to the investors, and abates trust in financial markets. How can the Volcker Rule contain this practice on a global scale?
After the $2 billion loss reported by JP Morgan, one of the four U.S. mega banks, the odds for regulation may be better now. The sentiment is global: banks in Europe have already faced a small backlash, and the prevailing opinion in parts of Asia is not whether there would be another financial crisis, but when.
Manjeet Kripalani and Neelam Deo's peice on the potential trouble faced by South Asian executives after insider trading scandals in the United States was published in Newsweek.