It is moral relativism at its worst in this article:–
I need help here. Say I own 100 shares of say Maggi (yes, the noodles brand). And about another ten of my friends also own shares in the same company. Now, you work for Maggi and are a close confidant of a friend of mine, say Iggam. You tell a top secret to Iggam that Maggi is going to stop manufacturing noodles as it has to save money to manufacture cars over a period of five years.
Iggam is very intelligent and he understands that the shares of Maggi will fall after it announces this. So, he decides to sell all his shares and make profits. He booked a profit of say Rs 200. He then informs his entire family, friends and then his office colleagues. Suddenly, everyone is selling Maggi shares. The shares of Maggi fall down, I think it is a good opportunity, so buy some more shares at low prices.
Now, a week after this, Maggi announces does announce that it will stop manufacturing noodles and switch over to cars. The shares fall all of a sudden and there is panic selling.
This might not be a classic example of insider trading, but Iggam did benefit from information not available to the public in general. Don’t you wish to slap him? Not just him but he person leaking information to him should also be slapped! Slapped with punishment!
That is exactly what US District Court Judge Jed Rakoff did to Rajat Gupta, India’s Wall Street poster boy. The former Goldman Sachs board member had it all in his resume, sought after companies and enviable jobs. However, last year he surrendered before the FBI over insider trading charges. Rajat’s friend Rajaratnam of Sri Lankan origin brought about his downfall. Rajaratnam has been convicted for being the mastermind being one of the biggest insider trading scams of the US.
While Rajat has been awarded with a two-year sentence, his billionaire friend shall be behind the bars for the next 11 years.
Now what wrong did the court do? If position holders resort to breach of trust and a few others earn at the cost of the stakeholders, they should be punished.
With this judgment, faith will be restored in all the investors that no one can dare to take their money for granted for long, Justice, even though delayed, is not denied.
I understand that humans succumb to emotions, Rajat was an orphan and made it big in life, that he is a self-made man (but self-destroyed too!), that his parents were respectable professionals, and that he is of Indian origin might all help build an emotional case in his favour.
However, an accountant, a doctor and a journalist should never go wrong, more so ethically; if they do they are answerable to many out there.
I can protect my money, how do I protect my business – of writing?