Chief executive of Goldman Sachs was pulled into a foreign affairs trial of Raj Rajaratnam and an accusation of Insider Trading.
The chief executive of Goldman Sachs, Lloyd C. Blankfein, testified on Wednesday in the insider-trading trial of Raj Rajaratnam, who before his arrest in 2009 was among the most powerful hedge fund managers on Wall Street. It was a unusual role for the Goldman chief executive, who has had audiences with presidents, foreign leaders and chieftains of the world’s largest companies. But on Wednesday, he was addressing a jury of New Yorkers — including teachers, transit workers and the unemployed — all of whom said they had never heard of Mr. Blankfein during the jury selection process. Federal prosecutors subpoenaed Mr. Blankfein to testify in the case against Mr. Rajaratnam, the co-founder of the Galleon Group who is facing up to 25 years in prison on charges that he earned $45 million trading on illegal stock tips. Among those the government says conspired with Mr. Rajaratnam was Rajat K. Gupta, a former Goldman director who has been accused of giving Mr. Rajaratnam highly sensitive information about the bank’s board meetings during the financial crisis.
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