One of the biggest victims so far in the insider trading scandals has been the once-vaunted consulting firm McKinsey & Co.

It still boggles the mind that Rajat Gupta, who once ran the firm as managing director was so involved. The Washington Post weighs in with a profile that makes clear that Gupta--despite clear company rules and procedures--was quite willing to flout them all. He was a millionaire many times over. But his head was turned by hedge fund wealth, personified by his friend Rajaratnam, to whom he leaked material nonpublic information about Goldman Sachs.

He engaged in rogue personal consulting gigs on the side, and formed businesses with dubious partners. None of which paid off. For whatever reason, being a consultant wasn't enough. He told people he also wanted to be a deal maker.

So far, Gupta faces insider trading charges via an administrative action only. While he does not face any jail time, his reputation is in tatters. His is PNG at his former firms.

Indeed, at McKinsey, you would have to think there's a lot of soul-searching going on. When former McKinsey consultant Jeff Skilling was convicted and went to jail, it certainly tainted the firm by association. And it was a big blow when Anil Kumar, another McKinsey guy who allegedly colluded with Rajaratnam, pleaded guilty to insider trading charges.

But the Gupta news is much worse, by far. By all accounts, he was a brilliant mind. But the greed got to him. One of his friends once warned him: "You're an eagle, so why do you want to be with these chickens who can't fly? You'll get the chicken flu."

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