Bloomberg's Matt Levine with a story about the dumbest McKinsey partner ever (whose last name – I'm not making this up – is Dikshit): McKinsey Partner's Insider Trading Strategy Was Bad. Excerpt:
The consultant made his trades using an account in his name and one in his spouse's name, according to the [Securities and Exchange Commission]. Evidence of Dikshit's insider trading was found on his work computer, prosecutors said. On the day before the GreenSky deal was announced, Dikshit used Google to search: "What happens to options when [the] company is acquired" and "greensky market cap." He also used it to check his broker's web page for information about $10 GreenSky call options, they said.
Three weeks later, after news of suspicious trading in GreenSky options, Dikshit used his McKinsey computer to run searches about Rajat Gupta's insider trading conviction.
If I were Goldman, I'd be mad! Not because of the "misusing their confidential information" stuff; that's embarrassing, but it's not like Dikshit's alleged trading drove up the price Goldman had to pay for GreenSky or anything. Just because of the operational incompetence! This is the guy you hired to advise you on your integration of a financial services firm, and he's (allegedly) out there buying short-dated out-of-the-money call options on the target of a merger he's working on? In his own name? From his work computer? Come on!
No comments:
Post a Comment