In another instance, Rajaratnam benefitted from insider tips provided by Rajat Gupta, a former McKinsey chief executive who served on Goldman Sachs' board. Often within seconds after a Goldman Sachs board meeting ended, Gupta called Rajaratnam . In one of these phone calls, Gupta revealed the impending multibillion dollar liquidity injection by Warren Buffett into Goldman Sachs during the midst of the global financial crisis. This information allowed the Galleon Group to buy Goldman Sachs shares before the official announcement about Buffett's investment was made, profiting from the subsequent stock appreciation. In another call, Gupta informed Rajaratnam that the investment hank would miss earnings estimates. Based on this insider information, the Galleon Group was able to sell its holdings in Goldman Sachs' stock prior to the announcement, avoiding a multimillion dollar loss.
Information asymmetry also can breed on the job consumption, perquisites, and excessive compensation. Although use of company funds for golf outings, resort retreats, attending professional sporting events, or having elegant dinners and other entertainment is an everyday manifestation of on-the-job consumption, other forms are more extreme. Dennis Kozlowski, former