Daily Archives: May 12, 2011

Andrew Hill Galleon trial leaves McKinsey bruised, not broken

May 12, 2011 8:17 pm by Andrew Hill

The conviction of Raj Rajaratnam for insider trading means McKinsey can breathe again. For now, the drip-drip of courtroom revelations about what Rajat Gupta, ex-head of the consulting firm, or Anil Kumar, a former partner, told the hedge fund billionaire, has stopped.

Mr Kumar has already pleaded guilty to insider trading. Mr Gupta, who denies wrongdoing, faces Securities and Exchange Commission civil charges. (A third McKinsey partner, David Palecek, who died last year, was mentioned in the trial, but his widow’s lawyer has said that he never agreed to “play ball” with Rajaratnam.)

Pending any action against Mr Gupta, the consulting world is wondering what will be the fall-out from the case – and not just for McKinsey. Read more

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Posted in Business, Consulting, Management |
From FT.com May 11, 2011

Steve Ballmer became chief executive of Microsoft in January 2000, a few months before a federal judge ordered the company to be broken up on antitrust grounds, because it was too powerful and was extending its grip too widely. This ruling was later reversed and, 11 years later Microsoft remains in one piece, and its size and scope has turned into its weakness. Read more

Posted in Business, Management, Technology |