Rajat Gupta To Raj: Goldman Was Thinking Of Buying AIG Or Wachovia

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This just in from the Raj trial: Rajat Gupta told Rajaratnam on a call that the Goldman Sachs board had discussed buying AIG or Wachovia.

Raj had called Rajat because he had a question about a rumour he’d heard.

Here’s what we caught from the recording. When the court publishes the transcript later, we’ll put that up too.

Raj Rajaratnam: I called you because there’s a rumour that Goldman might buy a commercial bank… and you know Wachovia’s got…

Rajat Gupta: There was a big discussion, a divided discussion, at a board meeting. More people were saying why, because it’s a low return business… but it may be interesting to develop a deposit base which is a low cost source of funding. Not that we’re having trouble raising funding…

Rajat Gupta: AIG was in the discussion mix… there’s some value there, with AIG or Wachovia.

We know that this call took place after Raj claims he paid Anil Kumar ~$3-4 million, which means it must have taken place after 2006, but for now that’s all we know.

Also from that call:

RR: I’m getting the feeling that [Anil Kumar] is trying to be a mini-Raj right now… without bringing anything new…

RG: I think you’re being very generous…

RR: I’ve never seen him laugh or be happy, he’s constantly, not scheming, but trying to figure [out where his chips lay]… and for the past 3-4 years I’ve given him a million bucks, after tax, offshore, cash…

(Anil Kumar disputes this, he says all Raj had given him at this point was $2.2 million.)

RR: And then he comes to me and says, you know, moving to New York is going to be expensive… I felt like he was driving a stake through my stomach.

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