Goldman Sachs chief executive Lloyd Blankfein has told jurors at an insider trading trial in New York that a former Goldman board member was about to leave the company in 2008 when prosecutors say he divulged secrets illegally over the next several months.
On Monday, Blankfein said he asked ex-Goldman board member Rajat Gupta (rahj-AHT' GOOP'-tah) to stay on in September 2008. He says he did so because he didn't want to make it seem the company's management was unstable at the height of the September 2008 economic crisis.
Gupta is accused of passing secrets he learned from Goldman's board in fall 2008 to a billionaire hedge fund founder who used the information to make millions of dollars. Gupta has pleaded not guilty. The trial is in its third week.