BODY OF EVIDENCE
EXCERPT 1
( Reference to Wachovia discussion at Goldman Sachs board meeting) Raj Rajaratnam ( RR): When you are… Um, I called you because I am meeting with Gary Cohn on Thursday. Rajat Gupta ( RG): Yeah. RR: And there’s a rumour, that Goldman might look to buy a commercial bank. RG: Uh- hum. RR: You know? And you know this guy Bob Steele, who was a senior guy at Goldman, was under- secretary. RG: Yeah. At Wachovia. RR: … at Paulson and went to Wachovia and they have a large demand, deposit base. RG: Yeah. RR: Have you heard anything along that line? RG: Yeah. This was a big discussion at the board meeting. RR: Uh- hum. RG: Uh, on whether we, uh… RR: Buy a commercial bank? RG: Buy a commercial bank. And, you know it was a uh, divided discussion in the board.
EXCERPT 2
( Reference to AIG discussion at Goldman Sachs board meeting) RG: If Wachovia was a good deal and they, you know, it’s quite conceivable they’d come and say let’s go buy Wachovia. RR: Or even AIG, right? RG: Or even AIG. Yeah. RR: Uh- hum. RG: A, AIG, it was definitely on, in, in, in, the discussion…
EXCERPT 3
( Reference to former Mckinsey executive Anil Kumar) RR: And I, you know, honestly, Rajat, I’m, giving him ( Anil Kumar) a million dollars a year for doing literally nothing. Just because… RG: I know, your being… I think your ( sic) being very generous. RR: Yeah, but you know I, sometimes… RG: But he should sometimes say thank you for that, you know? RR: Yeah but he’s never ever said, I mean, look he is my friend so, take it with that spirit, right?
RG: Yeah. Yeah, I, I… RR: But he just seemed uh, I don’t know what, he just seemed, I don’t think he’s, I mean that’s why I asked you, uh, I’ve never seen him laugh and be really happy, you know? RG: Yeah, because… RR: He is constantly, sche... not scheming, but constantly trying to figure out what other people’s angles are. RG: Right. RR: And then he seems to know what everybody else is worth, you know he leads with,“Oh, Sunil Mittal is worth 20 billion dollars”, you know, when he starts thinking like that… RG: Yeah.
EXCERPT 4
( Rajat Gupta asks for Rajaratnam’s advice on an offer from private equity firm KKR) RG: Do, do you, do you have two more minutes? RR: Yes. Of course. RG: First I wanted to get your straight opinion on whether uh, I think, you think I should do this KKR ( earlier Kohlberg Kravis Roberts) thing, and second I want to tell you about what I learned kind of maybe the deal he’s gonna offer me. RR: Right. RG: Which I want to bounce off you, if you, first I mean. You know, do you, do you really feel in the gut that given everything it’s a good thing to do? RR: I think so. I think if you do it in a way, see right now I think everybody expects you to spend 100 per cent of your time, other than charity, on New Silk Route, right? RG: That should not, a full… RR: Or 40 per cent or 50 per cent. RG: 40. RR: And I think you have to just kill that right away. Right? RG: Yeah. RR: And say that your value added is not to do with cash flows, that your value added is to bring people and deals together, at the right time make the call. You know, like the old merchant bankers? RG: And that’s exactly what I’ve been doing.