It's been a crappy week for Raj Rajaratnam, the hedge funder accused of masterminding an insider trading ring. But at least he isn't facing justice in his native Sri Lanka! [The Lede]

Anil Kumar, the former McKinsey & Co. director accused of feeding info to hedge fund founder and alleged crook Raj Rajaratnam, has pleaded guilty to securities fraud and conspiracy and agreed to cooperate with prosecutors. [NYT]

It's a good thing Citigroup repaid that $20 billion it owed the U.S. government on December 14. If it hadn't, some people might be a tad ticked off to hear that on December 30, the bank paid John Havens, Citi's investment banking chief, $9 million for his stellar work in 2008, making him the broken bank's highest-paid employee for the year. [WSJ]

Raj Rajaratnam, the hedge fund billionaire (and dwarf enthusiast) accused of insider trading, has even more legal trouble on his hands today. Prosecutors say they plan to tack on another bunch of charges to their original indictment, a move that could increase Rajaratnam's prison sentence to 15 years (or more) if he's ultimately convicted. Even more concerning: The Wall Street Journal unveiled a new illustration (or "hedcut") of Raj in the paper today, and his smile and casual, open-collared look has been replaced with one that makes him look much more defendant-y. That can't be a good sign, can it? [NYT, Dealbreaker, previously]

Manhattan federal judge Jed Rakoff has been nicknamed "Judge Dread" on Wall Street for his efforts to hold banks and financial execs accountable for their actions. (He's currently overseeing the case against Bank of America, which is accused of misleading investors regarding bonus payouts, and he's also presiding over the trial of Raj Rajaratnam, the hedgie charged with insider trading.) So how does Rakoff blow off steam when he isn't taking on big banks and crooked execs? He engages in a little ballroom dancing, that's what. [BusinessInsider]

Hedge fund manager David Tepper is a rare breed. Not only did he earn $2.5 billion in 2009 while many of his peers just struggled to keep their heads above water, he still lives in the same New Jersey home he and his wife have occupied since 1990, he's yet to buy a vacation home, and he still sends his kids to public school. [BN]

It's hard to say what's more pathetic: That the social networks at the center of Silicon Valley's growth derive so much money from online scams, or the way one venture capitalist excuses the whole sad scene.

The Dow Jones is already up nearly 150 points this morning, as everyone who made a resolution to invest for the new year piles their money into the market. Savvy finance sharks will take advantage of this onrush of dumb money, sending the market plummeting downward in the near future. And then there's that whole recession thing, which is still not over. So basically, sell now.

Raj Rajaratnam, the hedge fund billionaire who stands accused of masterminding a massive insider trading ring, was incredibly competitive and a ruthless boss. Of course you sort of have to be if you're planning to claw your way up to the top of the hedge fund pyramid. But it turns out he was a pretty wacky boss, too, as today's Wall Street Journal illustrates.

Computer hackers can be so cruel. Not only did a "Russian cyber gang" decide to mount an attack on one of America's banks, they picked the nation's most feeble financial institution, too. According to the Journal, hackers likely used a $40 software program to gain access to Citibank accounts and make off with "tens of millions of dollars," although in typical Citi fashion, for now the bank is pretending the computer attack never happened. [WSJ]

Credit where credit's due: Not every Wall Street chieftain is planning to take home home an eight-figure bonus at the end of the year. Outgoing Morgan Stanley CEO John Mack announced today that he is foregoing a bonus in 2009 for the third year in a row. "That makes him the first of the major banking chiefs to do so, at a time when many outside the industry are criticizing the probable return of outsized bonuses as these firms return to profitability." [NYT]

There was a protest outside Goldman Sachs this morning! The turnout wasn't great, but the handful of people who did turn out came armed with a special song. (It's to the tune of "Jingle Bells.") A video clip of the action is below.

Lehman Brothers may have gone bankrupt 15 months ago, but the liquidating firm is still paying out $50 million in year-end bonuses to some 230 employees. [Bloomberg, WSJ]

Citigroup chairman Dick Parsons couldn't be bothered to go to the White House on Monday to meet the president—he has an extremely active social life, let's not forget!—but the bank continues to enjoy special treatment in Washington, you'll be pleased to hear. On Friday afternoon, the IRS granted a special exemption that will allow Citi to hold on to a $38 billion tax benefit. [NYT]

Ever since Raj Rajaratnam was arrested in October for allegedly operating a vast insider trading ring, lawyers for the hedge fund founder have been busy pointing out flaws in the government's case. Now they'll get to see how it plays with a jury. A federal grand jury formally charged Rajaratnam with five counts of conspiracy and six counts of securities fraud this afternoon. [BN]

Goldman Sachs chief Lloyd Blankfein, Morgan Stanley CEO John Mack, and Citigroup chairman Dick Parsons were all supposed to be in Washington yesterday to meet with President Obama at the White House. But then a tiny patch of fog materialized in the skies overhead and they had to retreat to their offices, victims of a force even more powerful than Wall Street's mightiest: Mother Nature. So how did that go down in Washington?

Change isn't easy. Just ask Goldman Sachs CEO Lloyd Blankfein and Morgan Stanley chief John Mack, both of whom were unable to personally attend a meeting with the president in Washington today after their US Airways flights were delayed because of "fog."

Last week, Bank of America paid back the $45 billion it borrowed from the U.S. government last year. That left Citigroup the only big bank still under the watchful eye of Washington, and the only one still required to comply with limits on executive compensation. Citi CEO Vikram Pandit wasn't going to let that situation continue, was he? No, he was not. Following a "frenzied effort" over the past few days, Citigroup announced this morning that it will be paying back the $20 billion it received in bailout funds:

The House of Representatives passed legislation today designed to tighten regulations on Wall Street and prevent another financial crisis from unfolding in the future.

Goldman Sachs is giving in, believe it or not. The bank announced this morning that it plans to change up the way it compensates its top 30 execs this year, as the fury over outsized pay packages continues to grow. Goldman says it will now pay out the bonuses in the form of restricted stock, a move that will likely gratify Goldman's critics and also terrify high-end real estate brokers and Porsche salesmen in the Hamptons. [NYT]