The federal investigations into Goldman Sachs-related insider trading began with outside Director Rajat Gupta.  However, investigators appear now to be drilling down into the closely-guarded confines of this top investment banking and trading house. The latest target is Goldman Sachs managing director David Loeb, with investigators focusing on technology stocks and the company's hedge fund clients, the Wall Street Journal reported Wednesday. Loeb, 41, isn't the only Goldman official to be investigated after Rajat Gupta, who stands trial on insider trading charges in May.  Goldman technology analyst Henry King also is under investigation, according to the WSJournal. David Loeb, who deals with many technology hedge fund employees, worked closely with King, the WSJournal notes.  Further, documents filed in the case against Gupta referenced an insider at Goldman other than Gupta who provided inside information to a hedge fund client - and that person is said to be Loeb.  Calls to Goldman Sachs and the FBI were not answered outside U.S. business hours. During a Monday press briefing, the FBI reported that, to date, out of 64 arrests made in this investigation dubbed "Perfect Hedge," 59 people have been convicted or have pleaded guilty.

[C-I: With a winning record like that, it's almost conceivable that the FBI is in possession of material confidential information.  Hey, isn't that a crime?]

The investigation in and around Goldman is actually becoming somewhat scary - i.e., worrisome for people at the firm.  [Reuters, 2/29/12]     February 29, 2012 t By REUTERS