Mar 4, 2011

ex-McKinsey head Rajat Gupta charged with insider trading

Rajat Kumar Gupta, Chairman of the Board, The ...Image via WikipediaThis news although it came to light when Rajarathnam was being investigated, and Rajat Gupta's name was brought up, still sent a shock in the business community yesterday when the ex-McKinsey managing partner was charged by the US SEC for insider trading.

As this article says:

“McKinsey is the closest thing the business world has to a confessional, and [Gupta] was the high priest,” said a former managing director at Salomon Brothers and business school dean.
And a former Goldman MD talked about McKinsey "as the psychiatrist-in-chief for corporate America." The person explained to Bloomberg that if Gupta was found guilty of his alleged crimes," it means you can trust no one."

And over here in India, where he's a role model, students at top B-Schools are not giving up on him even though P&G seems to have given up on him. Rajat Gupta resigned from the P&G board on 1st March.

“The news came as a shock. I have known Rajat and know how much Indian students look up to him. Given his association with us, we feel personally affected,” a senior Wharton faculty member said in an email, requesting anonymity.

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