Rajat Gupta Conviction May Deter Insider Trading — For Now.
Former Goldman Sachs director Rajat Gupta, left, and his attorney Gary P. Naftalis leave federal court in New York on Friday.
The conviction of Rajat Gupta on insider trading charges is a real score for government prosecutors — maybe the biggest such conviction in history.
It will also probably barely deter other people from insider trading.
“I think for the next few days people will talk about Gupta, and for the next few days they will be more thoughtful about their actions,” said Dan Ariely, a behavioral economist at the Duke University Fuqua School of Business. “And then it will stop.”