Feeds

Ruiz out as Global Foundries chairman

Another casualty of Galleon-New Castle insider trading?

The next step in data security

GlobalFoundries, the wafer baking spinout of Advanced Micro Devices, announced this morning that chairman Hector Ruiz has taken a voluntary leave of absence from the company, effective immediately.

Ruiz is rumored to be one of the executives who spoke out of turn about that spinout, with the information subsequently finding its way back to hedge fund operators Galleon Group and New Castle Group; this insider information was used to profit illegally in AMD share trading.

The statement from GlobalFoundries said that Ruiz had submitted his resignation from GlobalFoundries in September (a date was not supplied), with an effective date of January 4, 2010. The implication appears to be that Ruiz had already planned to step down before the insider trading scandal involving Galleon and New Castle that hit on October 16.

This scandal has implicated executives from IBM, Intel and McKinsey & Co in providing information that allowed Galleon and New Castle to gain at least $20m from illegal trades in various stocks. These included those of AMD, Akamai Technologies, Clearwire, PeopleSupport, IBM, and Sun Microsystems.

Lanny Ross, who is the former chief executive officer of chip maker Broadcom and who is a member of the GlobalFoundries board, has been tapped to be interim chairman until a permanent chairman is appointed by the board.

A spokesperson at GlobalFoundries said that Ruiz' stepping down was consistent with his stated plans as the wafer baker was being spun out. The spokesperson would not comment as to any relationship between the leave of absence that Ruiz is taking and the insider trading scandal.

Last Friday, Bob Moffat, a former high-level executive at IBM, who allegedly passed information about the GlobalFoundries spinoff as well as on upcoming quarterly results for IBM and Sun Microsystems to Danielle Chiesi at New Castle, left Big Blue. He was stripped of his titles and put on a leave of absence on October 20. Moffat used to be senior vice president and general manager of IBM's Systems and Technology Group, which makes and sells servers, storage, and chips.

Moffat was also one of the handful of executives who had risen to the top of IBM. He was a possible contender for one or more of the top jobs of president or chief executive officer, once current chairman Sam Palmisano begins the process of retiring, perhaps next year if history is any guide.

Chiesi was also sharing information with Galleon Group founder Raj Rajaratnam, and both are accused by the US District Attorneys office in Manhattan of profiting specifically on the GlobalFoundries spinout.

Ruiz has not been charged by the US District Attorneys office in connection with the Galleon and New Castle insider trading scams. But the buzz last week was that if Ruiz was the executive who talked, he could be charged just like Moffat has been.

Thus far, only anonymous sources have been quoted in Bloomberg as saying that Ruiz is the AMD executive in the original complaints filed on October 16 who provided information to Chiesi and therefore to Rajaratnam. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.