Tags: GOLDMAN SACHS | BERKSHIRE HATHAWAY | WARREN BUFFETT | BANKS | INVESTMENT | HEDGE FUNDS | ECONOMY

Report: Buffett Has 'Great Confidence' in Goldman Sachs

Friday, 23 Apr 2010 09:31 AM

Goldman Sachs director Rajat Gupta told hedge fund billionaire Raj Rajaratnam about a $5 billion investment in Goldman by Berkshire Hathaway before the 2008 deal was made public, the Wall Street Journal said, citing a person close to the situation.

Separately, in an interview with Bloomberg News, Berkshire director Thomas Murphy said Warren Buffett has "great confidence" in the $5 billion investment that Berkshire made in Goldman in late September 2008, at the height of the credit crisis, as a vote of confidence.

Federal prosecutors notified Gupta in a letter that they had intercepted his phone conversations with Raj Rajaratnam, who, along with the Galleon Group hedge fund he founded, is fighting criminal insider trading charges in the case, the Journal said.

The exact nature of the conversation between Gupta and Rajaratnam could not be determined, the paper said.

In March, Reuters reported Gupta's decision to step down as Goldman director, but it was unclear at the time that there was any association with the Galleon case.

In a March 22 letter made public two weeks ago, the U.S. government said it was examining trades by Rajaratnam and others in shares of several companies, as part of a wide-ranging insider trading probe.

Among these companies was Goldman, where trades between June 2008 and October 2008 were being examined. The bank's shares traded between $74 and $187 over that time.

Gupta has not been charged in the case, and denies any wrongdoing in the matter, the newspaper said.

"Rajat has neither violated any law nor done anything else improper. He has always conducted himself with integrity in his business, philanthropic and personal life," Gary Naftalis, Gupta's lawyer, told the paper.

Goldman Sachs and the U.S. Attorney General's office declined to comment to the WSJ.

Gupta's lawyer Naftalis, Goldman Sachs, Berkshire Hathaway and the U.S. Attorney General's office could not immediately be reached for comment by Reuters outside of regular U.S. business hours.

© 2017 Thomson/Reuters. All rights reserved.

   
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Goldman Sachs director Rajat Gupta told hedge fund billionaire Raj Rajaratnam about a $5 billion investment in Goldman by Berkshire Hathaway before the 2008 deal was made public, the Wall Street Journal said, citing a person close to the situation. Separately, in an...
GOLDMAN SACHS,BERKSHIRE HATHAWAY,WARREN BUFFETT,BANKS,INVESTMENT,HEDGE FUNDS,ECONOMY
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2010-31-23
Friday, 23 Apr 2010 09:31 AM
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