Never take life seriously. Nobody gets out alive anyway.

The managing director of Mckinsey & Company, USA, Mr. Gupta Rajat, has been with us in Guilin with his daughter. CITS Guilin is their local tour operator. During their visit, Victor Shu, the manager of China Highlights Travel accompanied them during their stay. They were very much impressed by the Green Hills and rice paddies in Guilin and Yangshuo.

Bike in Yangshuo countryside

Biking in Yangshuo countryside

Biking in Yangshuo countryside

Biking in Yangshuo countryside

Watch cormorant fishing

Watching cormorants fishing

Climbing the moon hill

Mr. Gupta Rajat and Geetanjali climbed up to the Moon Hill in Yangshuo

The Rajat Gupta-Rajaratnam tapes
A new tape has now emerged of an alleged conversation between Rajat Gupta and Raj Rajaratnam .The conversation reveals how Rajat Gupta told Rajaratnam about the Goldman Sachs board meeting, which discussed the buying AIG or Wachovia.

Rajat Gupta: Hey, Raj. How is working from Connecticut?

Raj Rajaratnam: It’s good. I get more work done because people don’t… See I have open door, open office policy, right?

Rajat Gupta: Right. Right. Right

Raj Rajaratnam: Because you have to keep the culture so that people can come to you anytime

Rajat Gupta: Yeah. Yeah

Raj Rajaratnam: But then, what happens you are not as productive as you are.

Rajat Gupta: Yeah

Raj Rajaratnam: When you are… Um, I called you because I am meeting with Gary Cohn on Thursday

Rajat Gupta: Yeah

Raj Rajaratnam: And there’s a rumour that Goldman might look to buy a commercial bank

Rajat Gupta: Uh-hum

Raj Rajaratnam: You know? And you know this guy Bob Steele, who was a senior guy at Goldman was Under Secretary

Rajat Gupta: Yeah. At Wachovia

Raj Rajaratnam:…at Paulson and went to Wachovia and they have a large demand, I mean deposit base and all that

Rajat Gupta: Yeah

Raj Rajaratnam: Have you heard anything along that line?

Rajat Gupta: Yeah. This was a big discussion at the board meeting

Raj Rajaratnam: Uh-hum

Rajat Gupta: Uh, on whether we, uh…

Raj Rajaratnam: Buy a commercial bank

Rajat Gupta: Buy a commercial bank. And, you know it was a uh, divided discussion in the board

Raj Rajaratnam: Uh-hum

Rajat Gupta: I think more people saying why, because in essence it’s a low return business and while yeah it may be interesting to develop a desposit base which is a low cost source of funding

Raj Rajaratnam: Right

Rajat Gupta: Uh, you know, what we should probably explore more is, I mean, we aren’t having trouble funding ourselves but, you know we should explore more global sources of funding. And perhaps even you know uh, insurance or other things which also are a low uh, cost also

Raj Rajaratnam: Return

Rajat Gupta: Now having said all this…

Raj Rajaratnam: Right

Rajat Gupta: …they are an opportunistic group, so…

Raj Rajaratnam: Okay

Rajat Gupta: If Wachovia was a good deal and they, you know it’s quite conceivable they’d come and say let’s go buy Wachovia

Raj Rajaratnam: Or even AIG, right?

Rajat Gupta: Or even AIG. Yeah

Raj Rajaratnam: Uh-hum

Rajat Gupta: A, AIG it was definitely on, in, in, in, the discussion…

Raj Rajaratnam: Uh-hum

Rajat Gupta: …mix. Um, and you know, their view was actually, which has proven to be wrong, their view was very bearish on the commercial banks, but uh obviously, the commercial banks have had a pop in the last

Raj Rajaratnam: Yes. That’s maybe, just a dead cat bounce

Rajat Gupta: Yeah it could be that. I mean because their view of credit losses and all that is still more to come, credit cards, retail. You know?

Raj Rajaratnam: Right

Rajat Gupta: But, but you now sometimes all that gets factored into the market, as you know better than I do and…

Raj Rajaratnam: O.K.

Rajat Gupta: Uh, so I would be extremely surprised if uh…

Raj Rajaratnam: There was anything active

Rajat Gupta: Anything imminent. Yeah

Raj Rajaratnam: Right. O.K. That was one that I wanted to just, you know, see whether there was any thoughts on that. But it gotta be a good discussion point. I’m gonna start by saying how do you see the future financial services firms, the winners, right?

Rajat Gupta: Yeah. Yeah

Raj Rajaratnam: You know, (exhales) can they just fund for short term? Commercial paper or do they need deposits and insurance and things like that

Rajat Gupta: Yeah

Raj Rajaratnam: Because there are some values out there

Rajat Gupta: Yeah

Raj Rajaratnam: AIG and Wachovia and see what he, you know says

Rajat Gupta: Yeah. Yeah

Raj Rajaratnam: O.K. And then uh…

Rajat Gupta: Good

Raj Rajaratnam: George, I’m going to be out in the office on Thursday

Rajat Gupta: O.K

Raj Rajaratnam: So I’m going to get George to just uh, write the balances, if you want

Rajat Gupta: Well, what I did is I, you know, uh, as we had agreed, I just did the calculations for the

Raj Rajaratnam: Yes. Right

Rajat Gupta: You know

Raj Rajaratnam: Yeah. So George will just certify that and send you uh…

Rajat Gupta: Yeah

Raj Rajaratnam: I mean, I, I’ll you know, I’ll do it on my Galleon letterhead

Rajat Gupta: Yes, yes and let, let, let, let him update it on 30th of June if you can, so whatever it is

Raj Rajaratnam: 30th June it will be slightly down

Rajat Gupta: Slightly down is fine

Raj Rajaratnam: You know because of the uh…

Rajat Gupta: Yeah. Cost of money. Yeah

Raj Rajaratnam: Cost and all that so

Rajat Gupta: Yeah. Yeah

Raj Rajaratnam: All right. Anything else? Anything interesting?

Rajat Gupta: No. No that’s it.

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