Jan 24 A Morgan Stanley banker named
Kamal Ahmed is under investigation by U.S. authorities for
leaking information regarding an upcoming takeover that
ultimately was passed on to Galleon Group founder Raj
Rajaratnam, the Wall Street Journal said, citing people close to
Ahmed is the first Wall Street banker publicly drawn into
the investigation into Galleon, whose founder Rajaratnam faces
insider trading charges, the Journal said.
According to a Jan. 20 letter from prosecutors to
Rajaratnam's lawyers, the Morgan Stanley banker around May 2006
leaked details of Advanced Micro Devices Inc's interest
in buying ATI Technologies Inc, and that news of a pending
takeover was later funneled to Rajaratnam.
The letter had blacked out the identities of the banker and
the person who allegedly tipped Rajaratnam.
"Ahmed is cooperating with Morgan Stanley in its
investigation and we are confident when all the facts are known
it will be shown that he did nothing illegal or unethical,"
Ahmed's lawyer, Douglas Tween, told the Journal.
Morgan Stanley spokesman Pen Pendleton told Reuters on
Friday the banker has been put on leave, and that the company is
cooperating with the government's investigation.
Ahmed's lawyer Douglas Tween could not immediately be
reached for comment by Reuters outside regular U.S. business
(Reporting by Sakthi Prasad in Bangalore; Editing by Dhara
(Created by Dhara Ranasinghe)