AUDIO: Listen To Raj Tell One Of His Galleon Managers That He Just Got A Tip About Goldman Quarterly Losses From A Board Member

One of the most salacious elements in the trial of Raj Rajaratnam has undoubtedly been the centrality of Goldman Sachs stock to the prosecutor’s case.

Lloyd Blankfein was forced to testify.

Galleon traded millions in its shares.

A former board member was one of Raj’s best buds.

Galleon was a Tier 1 client of the bank.

Suffice to say, Raj’s trading of Goldman stock and the profits he made from those trades, has been a massive chunk of the government’s case against him and yesterday the court heard more about those trades.

Prosecutors allege that Rajat Gupta, 23 seconds after hanging up from a conference call about the Warren Buffett investment, called Raj with the news, and Raj traded on the information.

In the wiretapped recording below, Raj relays news of yet-to-be-announced quarterly losses to one of his managers based in Singapore. It’s 12:12 pm on October 24, 2008, when Raj calls David Lau.

For context, the day before, Goldman Sachs called a board meeting to tell the members that for the first time in the firm’s history, the bank was down for the quarter. Consensus on Wall Street was that the bank would report a profit, and a good one.

“I heard yesterday from somebody who’s on the board of Goldman Sachs that they are going to lose $2 per share,” Raj begins… “The Street has them making $2.50.”

Listen to the call: