Robert Day Being Investigated (Again)
Claremont McKenna Trustee Robert Day '65 is under investigation again for insider trading at the French financial firm Societe Generale. Day is the alumnus behind the Robert Day School of Economics, or RDS, which runs CMC's undergraduate economics department and also awards a Master's in Finance. The Wall Street Journal reports:
In its statement Thursday, SocGen also said that Robert Day, a nonexecutive director, also was under investigation for alleged insider trading by the French regulator and that he also rejected the allegations.
The bank said the proceedings against Messrs. Mustier and Day came in the wake of an investigation, started in 2008, into the bank's financial information disclosure and the trading of its shares.
Earlier investigations came in 2008, just a few months after plans for RDS were announced. Some speculated on the possible connection between the sale of shares and Day's $200 million donation, earmarked to fund RDS.
This investigation prompts the question, what would happen to RDS if Day were found guilty? How much distance would the College seek from one of its biggest benefactors?