Goldman Managing Director Snagged In Insider Trading Probe Leaves Firm
With the entire world, and certainly GETCO's ES and EURUSD algos, focused on every single update out of the Italian Senate race, which now appears certain to not bring the necessary 158 seats to the Bersani-Monti coalition leading to a chaotic revote in the coming months, here is some tangential news of the "who could have ever seen this coming variety." Following last week's Heinz insider trading probe, which implicated a Goldman Sachs account in Zurich belonging to some private wealth client, who was so anonymous not even Goldman knows who it belonged to, we now learn that yet another Goldman employee has just left the company in a totally separate insider trading probe.
A Goldman Sachs Group Inc salesman who has been under investigation for possibly passing confidential information about technology companies to hedge funds has left the bank, a spokesman confirmed on Monday.
David Loeb, 42, who was a managing director based in New York, has never been charged with wrongdoing. But his name surfaced among a small group of Goldman bankers under scrutiny in connection with an insider trading probe conducted by the FBI.
During last year's trial of Rajat Gupta, a former Goldman board member who was convicted of passing nonpublic information about Goldman's financial state to hedge fund manager Raj Rajaratnam, defense lawyers said it was Loeb, not Gupta, who gave Rajaratnam the secret information.
A U.S. prosecutor told the judge that Loeb provided Rajaratnam with information about Intel Corp, Apple Inc and Hewlett-Packard Co, but nothing about information on the trades at the center of the Gupta case.
Don't worry though: we are confident that if this ever goes to court, it will be all Fabrice Tourre's fault. Again.