This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Five Dumbest Things on Wall Street This Week: June 22

1. Say Goodnight Gupta

The jury has spoken and, in case you missed it, here's what it said: Rajat Gupta is the biggest moron in the universe.

Well, it didn't use those exact words, but that was essentially the message.

After two days of deliberations in the highly watched insider trading case, a jury convicted Gupta, the former head of consulting firm McKinsey & Co. and board director of Goldman Sachs (GS) and Procter & Gamble (PG), on four felony counts last Friday. Gupta was convicted on three counts of securities fraud regarding tips made about Goldman Sachs and one count of conspiracy in an insider trading scheme run by hedge fund manager Raj Rajaratnam.

The former corporate titan turned disgraced tipster will remain free on bail until his sentencing on Oct. 1, after which he could spend a maximum of 25 years behind bars.

Once again for those still in disbelief that the government whiffed on Rogers Clemens perjury rap Monday: Gupta is going from the Goldman Sachs board room to prison.

Seriously, how dumb can a supposedly smart person be? Gupta's fall from grace is nearly unfathomable. In fact, had we not lived through the monster known as Bernie Madoff and the equally atrocious Allen Stanford, we never would have believed it to be possible for an individual to attain such heights only to fall even further.

And all because he wanted to show his buddy Raj Rajaratnam what a big shot he was.

"Having fallen from respected insider to convicted inside trader, Mr. Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell," said Preet Bharara, U.S. Attorney for Manhattan, in a statement. "Almost two years ago, we said that insider trading is rampant, and today's conviction puts that claim into stark relief."

Hey, let's not get cocky Preet. There's still way too much evidence of monkey business among Wall Street's elite to hang a Mission Accomplished sign over the New York Stock Exchange.

But like the Hall of Fame hurler Clemens, maybe this victory will give you a temporary shot in the arm.

--Written by Gregg Greenberg in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
5 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs