Here’s an interesting piece of news from the FT:
The 2001 “call note” written by an analyst at JPMorgan’s alternative asset management arm said the unit “should reduce our allocation” in Galleon’s flagship technology fund, citing what it described as “more negative news about Raj and his cohorts”.
The JPMorgan note alleges that the principals of Galleon “liked to operate in the ‘grey areas’” of the markets. “If these allegations are true, there are some serious issues about business conduct,” the memo said.
The bank gained additional exposure when it acquired Bear Stearns last year since the former investment bank dealt with Rajaratnam’s hedge fund.
Question now is, did JP Morgan heed its analysts’ call? Or did their words fall on deaf ears?