Goldman's (GS) Blankfein Called to Testify at Rajaratnam Trial

Goldman Sachs Group (NYSE:GS) Chairman and Chief Executive Officer Lloyd Blankfein will be called by U.S. prosecutors to testify as a government witness at the insider-trading trial of Galleon Group LLC co-founder Raj Rajaratnam, according to Bloomberg.

In a letter sent yesterday to U.S. District Judge Richard Holwell, who is presiding over Rajaratnam’s trial in Manhattan, prosecutors sought to limit Blankfein’s cross-examination by defense lawyers, including “whether Goldman Sachs is presently the subject of any pending investigations by either the Department of Justice or the U.S. Securities and Exchange Commission” and whether Goldman Sachs bears any responsibility for the 2008 financial crisis.

After testimony concluded today, Holwell said that he will hear oral arguments regarding “the Goldman letter” tomorrow morning before testimony resumes.

Rajaratnam, 53, is on trial in the largest crackdown on hedge-fund insider trading in U.S. history. The Sri Lankan-born money manager is accused of making $45 million from tips leaked by corporate insiders and hedge fund traders.

Goldman Sachs closed Tuesday at $160.79, gaining $0.58, or 0.36 percent.




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