Warren Buffett Misses Chance to Show Moral Courage

Video - Paul Atkins - Former SEC Chairman

March 31 (Bloomberg) -- Paul Atkins, a former commissioner at the Securities and Exchange Commission, talks about the resignation of David Sokol from Berkshire Hathaway Inc. Atkins, speaking with Margaret Brennan on Bloomberg Television's "InBusiness," also discusses the Federal Reserve's release of secret loan documents under court order.

Bloomberg

By Alice Schroeder

What were they thinking?  How could Warren Buffett excuse David Sokol’s trading in Lubrizol stock while Sokol was pitching the company to Berkshire Hathaway as an acquisition candidate?

On Wall Street, we call this kind of trading front-running, and everybody knows that it is wrong.  People get fired for doing it. 

Buffett gave out a few facts in his press release yesterday, but the Schedule 14A filed with the Securities and Exchange Commission by Lubrizol fills in the damning pieces. After deciding to pursue Lubrizol as an acquisition candidate for Berkshire in the fall of 2010, Sokol tried to buy 50,000 shares on Dec. 13, the day he presented Berkshire’s possible interest to Citigroup Inc. and asked it to set up a meeting with Lubrizol’s management. He was able to acquire only 2,300 shares, and sold them a week later.

On Jan. 5, the day before Lubrizol’s management held a special meeting to discuss a possible sale to Berkshire, Sokol began to buy stock again. The following day, Lubrizol hired Evercore Partners Inc. (EVR) as its banker to respond to the potential interest of Berkshire. By Jan. 7, Sokol had purchased 96,400 out of a targeted 100,000 Lubrizol shares.

Continue reading...

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From earlier today:

CNBC Interview With David Sokol: Buffett's Lieutenant Denies Impropriety In Lubrizol Deal: "I Did Nothing Wrong"

Comments

[DailyBail]

Japan Reviewing Water Tests Showing Iodine at 10,000 Times Limit

http://www.bloomberg.com/news/2011-03-31/japan-reviewing-water-tests-showing-iodine-at-10-000-times-limit.html

[DailyBail]

Bank of Japan Is Said to Mull Emergency Loan Program After Quake

http://www.bloomberg.com/news/2011-03-31/bank-of-japan-is-said-to-consider-emergency-program-to-avert-cash-shortage.html

[DailyBail]

Yen Falls a Seventh Day Before Reports on U.S. Jobs, French Manufacturing

http://www.bloomberg.com/news/2011-03-31/yen-falls-a-seventh-day-before-reports-on-u-s-jobs-french-manufacturing.html

[DailyBail]

Sokol Seen by Experts as Showing Poor Judgment While Violating No Laws

http://www.bloomberg.com/news/2011-04-01/sokol-is-seen-by-experts-as-showing-poor-judgment-while-violating-no-laws.html

[Nunya Business]

This dude seems like he was somebody that was being paid under the table to defend people doing this or paid to look the other way. How, as a regulator, are you theorizing on the side of the criminal? If only the police officer with the traffic gun seeing me go 80 in a 55 would theorize that maybe I had a medical emergency at the time that made me speed and they would therefore have to wait for a deposition before giving me a ticket.

[Virgil]

Where have all the leaders gone to?

http://keepamericaatwork.com/?p=81286

[Inurface]

Rules are ONLY for the little people. Do you understand.

No rules for Buffet, no rules for Sokol, no rules for Atkins, they all sit in the same hot tub and run each others nads, understand......