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At IBM, ‘cheering in the halls’ after top exec Moffat is arrested

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

RESEARCH TRIANGLE PARK, N.C. – Robert Moffat, reportedly the heir apparent to IBM Chairman and Chief Executive Officer Sam Palmisano charged Friday with insider trading, is receiving no sympathy from the union seeking to represent Big Blue workers.

Get this quote from Lee Conrad, national coordinator for Alliance@IBM and an outspoken critic of IBM’s outsourcing away U.S. jobs:

"I have talked to a few IBMers today, and there seems to be a lot of cheering in the halls of IBM over his arrest," Conrad told the Times Herald-Record newspaper in New York.

"Employees are fed up with the executives of the company who seem to not care about the plight of the working people,” he added.

While Moffat remains innocent until proven otherwise, Conrad, who is a retired IBM worker, said Big Blue’s corporate suites are filled with people who care only about maximizing profits.

"I believe it is indicative of the corporate culture inside IBM now," Conrad said. "It is all about greed. Slash jobs and payroll while the executives continue to get rich on bonuses, compensation and stock options."

IBM has yet to comment about Moffat’s address. His biography and photo remain available on the Big Blue Web site.

Moffat was one of six people arrested Friday in what the Securities and Exchange Commission is calling the largest ever insider bust among hedge fund traders. Led by billionaire Raj Rajaratnam of the Galleon Group, the ring is alleged to have made more than $20 million in profits based on information.

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The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…