The vast investigation into insider trading on Wall Street that culminated this week in Raj Rajaratnam going on trial in New York accused of securities fraudwas always likely to ensnare a large institution – perhaps a big hedge fund or a Wall Street bank. No one, however, expected the institution in question to be McKinsey & Co.
It was bad enough for the blue-chip management consultancy when Anil Kumar, one of its partners, admitted to supplying Mr Rajaratnam with inside information in return for bribes (Mr Rajaratnam denies all charges). But the Securities and Exchange Commission’s claim last week that Rajat Gupta, who was the head of McKinsey between 1994 and 2003, passed on tips as a board member ofGoldman Sachs and Procter & Gamble, is a heavy blow.
That's interesting in itself - and yet more suggested evidence that the culture of corruption that swept organisations like KPMG with regard to tax fraud around the tunr of the century spread far and wide in the consulting sector.
What's the relevance? Well, McKinsey are apparently advising 20% pf the new GP consortia who are going to run the NHS. And KPMG a pile more.
Are these the sort of people we want running our health service?