As the old proverb goes, "the fish rots from the head down." How can we expect mid-level managers and the like to act lawfully and ethically when they see Mr. Gupta walking away with a slap on the wrist?
A product of the finest schools (the Indian Institute of Technology and Harvard Business School); the smarts to reach the pantheon of international business circles (Proctor and Gamble, American Airlines); entrusted to direct perhaps the most powerful financial company in the world (Goldman Sachs); and here he is blatantly passing what he had to know was inside information (to Raj Rajaratnam) from the hallway outside of Goldman’s Board Room. If it was a novel or movie, surely reviewers would say, "well-acted, but an implausible premise."
For a time it looked like the government was going to be satisfied with civil charges. But U.S. attorney Preet Bharara and his team have made the right decision. The strength of our financial system is grounded in trust and credibility. No better way to protect that system than aggressively enforcing the law without fear or favor. Directors of Goldman Sachs are not—cannot be—exempt. Captains of industry must be treated no differently than the corner drug dealer. As the old proverb goes, "the fish rots from the head down." How can we expect mid-level managers and the like to act lawfully and ethically when they see Mr. Gupta walking away with a slap on the wrist?
We applaud Mr. Bharara for charging Mr. Gupta and look forward to seeing the evidence as it unfolds.