<p>Gupta, who is accused by the Securities and Exchange Commission (SEC) of passing insider information to Rajaratnam, denies wrongdoing and has sued the US regulator.<br />The SEC has alleged that Gupta tipped off Rajaratnam about an imminent USD 5 billion dollar investment in Goldman by Warren Buffett in 2008, and that he also provided the quarterly earnings of Goldman and Proctor and Gamble, where he also served as a director.<br /><br />Last week, prosecutors played a secretly recorded phone conversation on July 25, 2008 in which Gupta tells the Galleon Group founder that the firm is discussing buying Wachovia or American International Group (AIG).<br /><br />"This was a big discussion at the board meeting," Gupta said during the call. It was a divided discussion."<br /><br />Blankfein replied "yes" when he was asked by the prosecution whether Gupta violated confidentiality policy in the call about the possible acquisition.<br /><br />He read out guidelines, which the directors were required to adhere to, including, "directors must maintain the confidentiality of all information so entrusted to them."<br />Blankfein said that besides the confidentiality policy, directors also had the duty of putting the interest of the firm first.<br /><br />When asked if Gupta had violated this duty, he responded, "my sense of it… yes."<br />During cross-examination, Blankfein said that the Galleon's relationship with Goldman Sachs was an important one.<br /><br />"I know it was a prominent client for Goldman Sachs," he said.When asked whether Gupta was viewed as "highly esteemed individual" in the business world, Blankfein said "yes".<br /><br />Rajaratnam is accused of making more than USD 45m by illegally trading on insider information.<br /><br />His lawyers say that Rajaratnam conducted his business based on information that was already in the public domain and through research.<br /><br />Out of the 26 people arrested in this case, 19 have pleaded guilty.The 53-year-old Sri Lankan-born billionaire, however, denies any wrongdoing.<br />He could face up to 20 years in prison, if found guilty.<br /><br />Earlier in the day, Rajaratnam's defence lawyer, John Dowd, told the judge that he would not question Blankfein about other legal proceedings involving Goldman Sachs.<br />Dowd tried to convince the jury that the information Rajaratnam and Gupta talked about was already in the media.<br /></p>
<p>Gupta, who is accused by the Securities and Exchange Commission (SEC) of passing insider information to Rajaratnam, denies wrongdoing and has sued the US regulator.<br />The SEC has alleged that Gupta tipped off Rajaratnam about an imminent USD 5 billion dollar investment in Goldman by Warren Buffett in 2008, and that he also provided the quarterly earnings of Goldman and Proctor and Gamble, where he also served as a director.<br /><br />Last week, prosecutors played a secretly recorded phone conversation on July 25, 2008 in which Gupta tells the Galleon Group founder that the firm is discussing buying Wachovia or American International Group (AIG).<br /><br />"This was a big discussion at the board meeting," Gupta said during the call. It was a divided discussion."<br /><br />Blankfein replied "yes" when he was asked by the prosecution whether Gupta violated confidentiality policy in the call about the possible acquisition.<br /><br />He read out guidelines, which the directors were required to adhere to, including, "directors must maintain the confidentiality of all information so entrusted to them."<br />Blankfein said that besides the confidentiality policy, directors also had the duty of putting the interest of the firm first.<br /><br />When asked if Gupta had violated this duty, he responded, "my sense of it… yes."<br />During cross-examination, Blankfein said that the Galleon's relationship with Goldman Sachs was an important one.<br /><br />"I know it was a prominent client for Goldman Sachs," he said.When asked whether Gupta was viewed as "highly esteemed individual" in the business world, Blankfein said "yes".<br /><br />Rajaratnam is accused of making more than USD 45m by illegally trading on insider information.<br /><br />His lawyers say that Rajaratnam conducted his business based on information that was already in the public domain and through research.<br /><br />Out of the 26 people arrested in this case, 19 have pleaded guilty.The 53-year-old Sri Lankan-born billionaire, however, denies any wrongdoing.<br />He could face up to 20 years in prison, if found guilty.<br /><br />Earlier in the day, Rajaratnam's defence lawyer, John Dowd, told the judge that he would not question Blankfein about other legal proceedings involving Goldman Sachs.<br />Dowd tried to convince the jury that the information Rajaratnam and Gupta talked about was already in the media.<br /></p>