Goldman manager investigated for insider trading role: report

Wed Feb 29, 2012 9:06am EST

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(Reuters) - Federal authorities are investigating David Loeb, a managing director of Goldman Sachs Group Inc, as part of an insider trading probe focusing on technology stocks and the company's hedge fund clients, the Wall Street Journal reported on Wednesday, citing people close to the matter.

Loeb, 41, would be the latest Goldman official to be investigated after Rajat Gupta, a former Goldman director, who faces trial in May for insider trading. Goldman technology analyst Henry King is also under investigation, the WSJ reported.

Loeb, who deals with many technology hedge fund employees, worked closely with King, the paper said citing the sources. Documents filed in the case against Gupta referenced an insider at Goldman other than Gupta who provided inside information to a hedge fund client. That person is said to be Loeb, the WSJ reported.

Calls to Goldman Sachs and the FBI were not answered outside U.S. business hours.

On Monday during a press briefing, the FBI said to date, out of 64 arrests made in "Perfect Hedge," the name given to the investigation, 59 people have been convicted or have pleaded guilty.

(Reporting by Eileen Anupa Soreng in Bangalore; Editing by Matt Driskill)

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Comments (5)
Hewson wrote:
The Vampire Squid seems to be coughing up bodies on a regular basis, each one an indication of the corrupt rottenness within. Evidence of just how rigged and dysfunctional the markets are is coming to light almost daily. No matter how many inside traders get locked up there will always be ten more to take their place. The rewards outweigh the risks and it’s only through much tighter regulation and massive punitive damages that this rot can begin to be excised from the system.

It’s not that it CAN’T be done. All it takes is the will.

Feb 29, 2012 11:32am EST  --  Report as abuse
AlkalineState wrote:
Goldman is a crime ring. They should be dissolved and their ‘executives’ should be arrested for imbezzlement and racketeering.

Feb 29, 2012 12:00pm EST  --  Report as abuse
NewsDebbie wrote:
Guantánamo Bay would be a good place for these economic terrorists.

Feb 29, 2012 2:07pm EST  --  Report as abuse
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