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Alice Schroeder's Scathing Take On Lubri-Gate

Tyler Durden's picture




 

Alice Schroeder, who once upon a time was the current "Becky Quicky" of Buffett's inner circle (although to her not so great loss not allowed in the inner sanctum of the NetJets mile high club) until she turned rogue on the billionaire and wrote something not quite so flattering about the Octogenarian of Omaha, whose bubble of unparalleled hypocrisy has just popped, has now burned every last bridge to the annual borg collective meeting at Borsheims, writing the most scathing narrative of the revalations from the last 24 hours. Oh well, we can only advise Buffett and his sidekick Munger to suck it up, now that the dirty laundry of America's dream wealth creator is exposed for all to see.

From Bloomberg

Buffett Misses Chance to Show Moral Courage

What were they thinking? How could Warren Buffett excuse David Sokol’s trading in Lubrizol Corp. (LZ) stock while Sokol was pitching the company to Berkshire Hathaway Inc. (BRK/A) as an acquisition candidate?

Buffett and Sokol both say that nothing “unlawful” was going on (Sokol even went so far as to tell CNBC he did nothing inappropriate). Their explanation is that, because a deal with Lubrizol hadn’t actually been struck and wasn’t likely when Sokol bought his shares, it was all right for Sokol to profit from his knowledge of a possible deal.

On Wall Street, we call this kind of trading front-running, and everybody knows that it is wrong. People get fired for doing it. Sokol said that he is leaving Berkshire to pursue other business interests, and the timing is linked to Berkshire’s April 30 annual shareholder meeting, which is attended by tens of thousands of people. That’s probably true, in a sense. Buffett must want this mess cleared up and out of the way before he has to take questions from shareholders.

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.
Sokol’s Purchase

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.

It strains credulity to claim these dates were coincidental and that Sokol had only a 5 percent belief (as he has stated) that Berkshire would buy Lubrizol. Sokol covered his bases by casually mentioning to Buffett that he owned stock when he pitched the acquisition in December. He gave no details and apparently kept quiet for almost three months, until after the Berkshire board had sealed the deal on March 13.

When Berkshire announced it was buying Lubrizol, the stock soared and Sokol pocketed a $3 million profit. It’s a large sum, but Sokol is a very rich man already, and it looks like he fell into the classic trap of the rich and powerful, who so often blow their reputation over trivia.

Misleading by Omission

With hindsight, Lubrizol’s SEC filing may be misleading by omission -- inadvertently so. Nowhere is Sokol’s financial interest mentioned in the catalog of events leading up to the deal. The relevant section of the filing says, in short, that neither Berkshire nor any of its subsidiaries (other than its externally managed pension funds) directly or indirectly owned a material amount of Lubrizol stock within the past three years.

Sokol may not technically fit into the definitions of this section, but it highlights the importance of disclosing positions in acquired stock by interested parties who could profit from the deal and that are material. In this light, you have to wonder what Lubrizol management thinks today about its dealings with Sokol.

Not surprisingly, according to the Financial Times, the SEC is now beginning an investigation. Presumably, it will look into whether there are similar patterns of trading in advance of other acquisition pitches by Sokol to Berkshire, whether consummated or not. One specific transaction that has piqued the curiosity of onlookers for months is Sokol’s purchases of shares of Middleburg Financial Corp. (MBRG) since 2010. And even if the SEC concludes that Sokol did nothing illegal, the known facts suggest that what Sokol did was wrong.

Lottery Tickets

In substance, when Sokol pitched the deal to Buffett, he was holding stock in Lubrizol that had the equivalent of free lottery tickets attached. These 96,400 lottery tickets gave Sokol unfair odds -- odds far better than in the kind of lottery the general public gets to play.

It would be inexcusable for the chief executive officer of Berkshire Hathaway to front-run a potential acquisition this way. Why then, couldn’t the CEO of Berkshire admit it is inexcusable for one of his own senior managers to do so? Instead of condemning Sokol, Buffett gave him a pat on the back on the way out the door. Since when is it enough to merely uphold the letter of the law, especially at Berkshire? Whatever happened to Buffett’s famous saying, “Lose money and I will forgive you, but lose even a shred of reputation and I will be ruthless”?

It’s too bad that Buffett missed an opportunity to show moral courage, stand up for principle, reinforce to his employees what he expects from them, and, not least of all, to live up to his own public reputation.

Editor’s note: Alice Schroeder has been subpoenaed by Berkshire subsidiary NetJets seeking confidential information related to her news sources for other publications. The matter is being heard in Connecticut state court.

 

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Thu, 03/31/2011 - 16:29 | 1122766 redpill
redpill's picture

Takes some guts.  I'm so tired of people riding Buffett's nuts.  I want like hell to short his piece of shit company.

 

Thu, 03/31/2011 - 16:35 | 1122791 long juan silver
long juan silver's picture

His long term on Moody's looking DIE-NO-MITE!!!

Thu, 03/31/2011 - 16:46 | 1122829 nope-1004
nope-1004's picture

I'm so tired of people riding Buffett's nuts

Buffet claims he is good at what he does because he has some sort of "knack" for it.  Well, timing is where the knack is.

He started his investing during post war times where, for the last 50 years, we've seen nothing but fractional reserve profits.

What if he were to start today, as a 20-something with the same knack?  Could he do it?  I say no.  The world has changed.  He was born into a time that made him, not the other way around.

I think he's done and should step aside.  He also is obviously unaware of where the ethical line is, so for that, I will never listen to him or care what he as to say again.

He's another bankster.

 

 

Thu, 03/31/2011 - 16:50 | 1122855 Thomas
Thomas's picture

In 1992, Michael Lewis put a bat to Saint Warren's wrinkly ass...

http://www.tnr.com/article/politics/the-temptation-st-warren

The absurdity is that Sokol's net worth is probably huge in comparison with his profits from this sleazy move.

Thu, 03/31/2011 - 18:40 | 1123173 rich_wicks
rich_wicks's picture

The absurdity is that Sokol's net worth is probably huge in comparison with his profits from this sleazy move.

Possibly, the question you should be asking is how many sleazy moves has Sokol made?  That might be the primary source of his large net worth.

Sokol has shown himself to be a scumbag.  What makes you think this is his FIRST traversal into a lack of ethics?

Thu, 03/31/2011 - 16:58 | 1122888 reader2010
reader2010's picture

Remember his strong backing of candidate Obummer back in 2008? I knew he is full of shit because he was planning to let the taxpayers bail out AIG so that his reinsurance profits would never get a hit. I say he is just another Wall Street criminal.

Thu, 03/31/2011 - 17:22 | 1122990 strannick
strannick's picture

 

Buffet said the adage 'behind every great fortune is a crime' doesnt apply to Berkshire. Maybe he wasnt being straightforward.

Thu, 03/31/2011 - 19:25 | 1123334 Imminent Crucible
Imminent Crucible's picture

"behind every great fortune is a crime" is certainly not true of Uncle Warren.

As Long Juan notes below, in Warren's case it's "behind my fortune is a long list of crimes".

I would add the 130 million ounce iShares silver switcheroo to the list.

Thu, 03/31/2011 - 20:46 | 1123575 LibertyIn2010
LibertyIn2010's picture

Buffet symbolizes the good ol' USA.

Take away the corporate propaganda machine (mainstream media) and behind the larger than life legend he's just another elitist who proves they don't play by the same rules that we're all expected to play by.

Thu, 03/31/2011 - 19:08 | 1123234 long juan silver
long juan silver's picture

Buffetts greasy fingers are all over the 2008-2009 blow out:

Positions:
AIG
GS
MCO (Moodys)
MTB(M$T Bank)
AXP
USB (USBancorp)
The largest private insurance portfolio in the world.

The whinings pleas:
The crying plea for govt bailouts and then when the market got whoopassed:
the famous plea for Americans to Buy, Buy, Buy
---3 months early

The courious politics:
Having an a-political history and nature, Buffett surprises the world with a much trumpeted endorsement of Obama. Where did this come from?(Did I mention his GE position? The Washington Post and Gannett positions?)

The 45 billion cash position as/of late 2008:
You could make a case that he created the blowout in order to buy cheap.

Warren buffet is a thief in my view and If he don't like it I'll give him my address and see if he's man enough to come over.

We dont drink soda either.

Thu, 03/31/2011 - 19:13 | 1123277 wisefool
wisefool's picture

Caffinated soda is bad. If you want to admit you drank diet soda, then you probably should not have a secretary in the 35% tax bracket.

And no, WB could not beat you at checkers, much less show up at your house for fisticuffs.

TPTB! Opening Day. Go MLB.

Thu, 03/31/2011 - 18:12 | 1123121 wawawiwaa
wawawiwaa's picture

He would trounce (spelling) just about everybody.

Thu, 03/31/2011 - 18:35 | 1123160 wawawiwaa
wawawiwaa's picture

Some peops may be missing the point. The issue has nothing to do w/ Berkshire. The issue has to do w/ the fact that SOKOL was talking to Lubrizol management. About what? Suppossedly "culture and policies" that I find hard to believe. Culture and policies, that is a bunch of BULL@#$%^&*(). If ones follows the "mosaic" method of investing it would be interesting to find out why so many peops lost so much money on the LZ CDS trade. Answer... cause people expected an LBO..... why? Conversations about culture and policy with management I bet. And putting two and two together here is the most likely scenario.... SOKOL was told by management "We are thinking of taking this sucker private. Sokol buys some and tells Warren. Warren says screw that. I'll just buy it. 

And that is how the "mosaic" method of investing works.. See how it all fits nicely together?

Thu, 03/31/2011 - 17:58 | 1123076 macholatte
Thu, 03/31/2011 - 16:29 | 1122767 Atomizer
Atomizer's picture

Snowballed sequel edition

Thu, 03/31/2011 - 16:29 | 1122768 buzzsaw99
buzzsaw99's picture

Buffett is getting front-run on every deal these days.

Thu, 03/31/2011 - 16:32 | 1122772 OutLookingIn
OutLookingIn's picture

 

My, oh my, oh my! Hand in jam jar as the camera goes off!

"What jam he exclaimed?" Standing there with it dripping off his chin!

When asked again he responded, "I didn't know it was jam." Ya right.

Thu, 03/31/2011 - 16:33 | 1122774 Ruffcut
Ruffcut's picture

Buffy the asswipe slayer, likes the buy of coke.

NOt the coke drink, the stuff that snookie snoots.

To be considered elite, and such a shill of propaganda. What a another ameerika embareassment.

Thu, 03/31/2011 - 16:33 | 1122777 oogs66
oogs66's picture

On cnbc, not a single question about average stock holding size? Is this a big position even for him? How many other stocks did he even own? They did ask a bit about past names which he half dodged. Maybe tomorrow Raj Raj can be guest host of squak.

Thu, 03/31/2011 - 16:36 | 1122789 buzzsaw99
buzzsaw99's picture

I wonder if the Lloyd Thy Blankfein testified under oath at that trial or if the judge allowed him an "informal chat"? I would love to ask Gollum a few questions under oath.

Thu, 03/31/2011 - 16:50 | 1122852 web bot
web bot's picture

No... he was allowed an informal oath.

Thu, 03/31/2011 - 18:46 | 1123190 wisefool
wisefool's picture

It was only 2900 shares in a sea of trillians.

Thu, 03/31/2011 - 16:33 | 1122778 RobotTrader
RobotTrader's picture

Looks like she pretty much shut the door on Warren.

No more "cheap feels" on the NetJets flights.

Thu, 03/31/2011 - 16:43 | 1122818 Internet Tough Guy
Internet Tough Guy's picture

Crude oil pole-axed on inventory "glut"
RobotTrader - Wed, Mar 30, 2011 - 10:34 AM

Once again, the Peak Oilers were foiled again.

Looks like the long specs are finally running for the hills.

Thu, 03/31/2011 - 16:47 | 1122846 RobotTrader
RobotTrader's picture

Like I said yesterday, commodities were destroyed early on, but there was no follow through.

So bears needed to take note and be ready for another leg up in commodities and stocks today.

Gotta be quick on your feet, man....LOL....

Thu, 03/31/2011 - 17:28 | 1123002 That Peak Oil Guy
That Peak Oil Guy's picture

Riiight... Because the concept of peak oil is invalidated by short-term market volatility.

TPOG

Thu, 03/31/2011 - 18:21 | 1123138 DaveyJones
DaveyJones's picture

short-term thinking

Thu, 03/31/2011 - 20:08 | 1123460 Bastiat
Bastiat's picture

Right now I'm seeing WTIC at $107.44  -- not looking too "poleaxed" to me.

Fri, 04/01/2011 - 02:37 | 1124244 Hephasteus
Hephasteus's picture

Hard for some to tell the difference between a glaive and a nave.

Thu, 03/31/2011 - 18:00 | 1123077 TexDenim
TexDenim's picture

Becky and Warren deserve one another. They can watch Leave It To Beaver re-runs till the cows come home.

Thu, 03/31/2011 - 18:03 | 1123088 cosmictrainwreck
cosmictrainwreck's picture

those are on TV-Land channel, right?

Thu, 03/31/2011 - 16:32 | 1122782 DoChenRollingBearing
DoChenRollingBearing's picture

Years ago, long before ZH, I decided to try and make some money ¨the easy way¨.  I went and bought some Berkshire B at $4800.  I got antsy at $7200 and so cashed it in.  This was in the days, you know, that Buffett was considered such a hero and Oracle.

I am very glad I got out when I did.  And it is really too bad that he turned out to be yet another moocher.

...

Too bad he just took out perhaps the best railroad, BNSF...  Anyone care to comment on the best railroad to buy now?  For buy and hold (if that still works anymore).  Anyone?

Thu, 03/31/2011 - 16:36 | 1122790 bob_dabolina
bob_dabolina's picture

The one that takes out George Soros. I'll buy that one.

Thu, 03/31/2011 - 16:46 | 1122827 Dr. Richard Head
Dr. Richard Head's picture

+ chugga chugga choo choo

Thu, 03/31/2011 - 16:47 | 1122835 DoChenRollingBearing
DoChenRollingBearing's picture

I´ll try to keep up with the news Bob!

Thu, 03/31/2011 - 16:41 | 1122817 Ahmeexnal
Ahmeexnal's picture

Taggart Transcontinental?

Thu, 03/31/2011 - 16:46 | 1122841 DoChenRollingBearing
DoChenRollingBearing's picture

Only in our minds, only in our minds...

Thu, 03/31/2011 - 17:24 | 1122992 Dagny Taggart
Dagny Taggart's picture

No trains ran after the looters destroyed the Taggart Tunnel.

Thu, 03/31/2011 - 16:55 | 1122885 Ben Fleeced
Ben Fleeced's picture

He was raised a moocher by his father, Sen. Howard.

Thu, 03/31/2011 - 18:38 | 1123172 Don Birnam
Don Birnam's picture

+ Ragnar Danneskjold

Thu, 03/31/2011 - 17:57 | 1123059 One_Eyed_Pony
One_Eyed_Pony's picture

Reading Railroad... It was my favorite on the MONOPOLY game, plus they use the same money as the FEDERAL RESERVE (counterfeited toilet paper).

 

 

Thu, 03/31/2011 - 16:33 | 1122783 long juan silver
long juan silver's picture

So if Alice Schroeder is Buffet's Ida Tarbell, is Becky Quick (not with me pal) his Ruby Rubacuori?

Thu, 03/31/2011 - 18:46 | 1123185 Jay Gould Esq.
Jay Gould Esq.'s picture

Karima el-Quick.

Bunga-bunga.

+1

Thu, 03/31/2011 - 16:35 | 1122784 Cdad
Cdad's picture

Buffett and Sokol both say that nothing “unlawful” was going on

Just like true criminal syndicate Wall Street banker members...if you simply say it, it is true.  Never mind about laws, the SEC, the people you rip off, ethics...nothing.  Just say nothing happened...and then nothing will have happened.

No longer a nation of laws, bitchez!!

 

ROME!

Thu, 03/31/2011 - 16:38 | 1122802 long juan silver
long juan silver's picture

If you did that off the desk at a BD you'd be BARRED FOR LIFE!!

Thu, 03/31/2011 - 16:36 | 1122795 Rockfish
Rockfish's picture

Buffet knew Sokol had bought shares, that is SOP at The Berk. No foul.

Thu, 03/31/2011 - 16:50 | 1122861 Quinvarius
Quinvarius's picture

Actually it makes Buffet look bad too.  Two fouls.  Buffet's lax attitude indicates it was commonplace to front run shareholder money.

Thu, 03/31/2011 - 16:40 | 1122811 Slicyman
Slicyman's picture

Couple of observations having worked on Wall Street for 20 yrs: 1) I would be fired for doing what Sokol did and it would only take a minute to do. 2) His comments point to more of a interest in his own personal investment interests vs Berkshire by saying if I liked Lubrizol so much and I couldn't take a personal interest then I wouldn't take it to Warren. Huh? Isn't he a fiduciary for Berkshire shareholders first. Why doesn't Warrne have a interest in commenting on that. And  Munger held a 3% stake in BYD before bringing it to Warren? Sounds like Berkshire is the Omaaha version of SAC.

Thu, 03/31/2011 - 18:01 | 1123084 cossack55
cossack55's picture

Don't you mean FEDuciary?

Thu, 03/31/2011 - 16:44 | 1122812 Widowmaker
Widowmaker's picture

The excuses by the mobster from omaha and his filthy scum executives is the sad old adage:  It's okay if everyone does it, which many, many people view as true.

Every person i know in the finance biz does this shit (fronting trades on inside information), and does it as often as they can get their greedy hands on easy money.

My other favorite adage used by the filthy is justifying filthy behavior by pointing at worse.

These guys need handcuffs, and so does everyone who touches their scum stock.

Thu, 03/31/2011 - 16:40 | 1122813 wisefool
wisefool's picture

I actually paid a good bit of my work product on this earth to some former (pensioned) revenuers who like the skirts(tax code) at a resonable length. Including making sure if the boys want to come into town after a cattle drive that they put the guns down and see who can throw this crap into the sun.

Believe it or not, the three stooges did thier own stunts. Buffet comes from good people.

Thu, 03/31/2011 - 18:53 | 1123207 wisefool
wisefool's picture

Keep on junking. I'll keep on eating meat from the Birdseye.

Thu, 03/31/2011 - 16:45 | 1122816 long juan silver
long juan silver's picture

Hell the SEC can't even corral the chinese RTOs. It's looking like a no-limit deer season!

Heck, the Egyptian police do a better job than the millionaires (Thank you Finra) Shapiro!

Thu, 03/31/2011 - 16:44 | 1122821 truont
truont's picture

Hey, Charlie!

I don’t have the slightest interest in insider trading. I like understanding what works and what doesn’t in human systems. To me that’s not optional; that’s a moral obligation. If you’re capable of understanding the world, you have a moral obligation to become rational. And I don’t see how you become rational doing insider trading. Even if it works, you’re a jerk.

Thu, 03/31/2011 - 16:44 | 1122824 SilverFiend
SilverFiend's picture

"odds far better than in the kind of lottery the general public gets to play."

Sadly I think this kind of stuff is common place today.  When the bottom 99% rise up,  payback is going to be a bitch on Buffett and all the other parasites in our society.

Thu, 03/31/2011 - 16:52 | 1122864 Dr. Richard Head
Dr. Richard Head's picture

God I would love to believe so, but the indication of an uprising is lacking.  The TV still beats its nonsense into the conscience of all who watch the heads blather on.  In fact, there are many that believe that Buffett the Bushranger is just really that smart.  You know he still lives in the first house he bought....blah....blah.....meh. 

Thu, 03/31/2011 - 16:46 | 1122828 web bot
web bot's picture

The failing is with Berkshire Hathaway.

Anyone with sense would have a policy in place where either any stock purchase would need to be made known to executive legal council within 24 hours of execution, or simply no purchasing of stock allowed, with the exception of BH. Period.

Don't forget that nice Buffett image... who also supports population control and a host of other quack ideas... is a mirage.

Thu, 03/31/2011 - 18:46 | 1123192 Jay Gould Esq.
Jay Gould Esq.'s picture

Avuncular uncle my arse.

The man is probably a master with the riding crop.

Thu, 03/31/2011 - 16:45 | 1122832 Cognitive Dissonance
Cognitive Dissonance's picture

Uncle Warren - "It all just a silly dust up over a measly $3 Million, barely enough to keep the house slaves in food and clothes. If it had been $3 Billion we might wish to discuss it a bit further. Now where's that little numph Becky? I'm ready to engage in some quality flight time."

/sarc

Thu, 03/31/2011 - 17:01 | 1122909 reader2010
reader2010's picture

I first met Becky back in the 90s when she was just hired by Dow Jones & Co for their TV venture. She was a lot juicer back then. 

Thu, 03/31/2011 - 18:06 | 1123098 pvmuse
pvmuse's picture

I thought she looked tired, and actually somewhat guilty for all the time she spent on her knees with Uncle Buffy this last week in India. I'm sure she keeps wondering if she is getting paid enough, yeah she ride in a private jet, but "Uncky" is a known cheapskate. Her pay was supposed to be in kudos for being so "in" with the Oracle, but that currency seems to be depreciating faster than dollars. She should go back to just stealing husbands, as she did with her current producer.

Thu, 03/31/2011 - 18:50 | 1123203 Jay Gould Esq.
Jay Gould Esq.'s picture

The Kama Sutra is a vigorous, taxing regimen upon the body of the uninitiated. As such, demonstrable fatigue after a week in India is wholly understandable.

Thu, 03/31/2011 - 16:45 | 1122837 buzzsaw99
buzzsaw99's picture

If this is SOP at BRK then insider trading is even more rampant than I thought.

Thu, 03/31/2011 - 16:47 | 1122844 Atomizer
Atomizer's picture

SShhhhhhhhhh. Don't bother the SEC now. They're watching a rerun of The Justice League XXX

Thu, 03/31/2011 - 16:52 | 1122863 Dr. Porkchop
Dr. Porkchop's picture

Bend over, and don't forget the Lubrizol.

Thu, 03/31/2011 - 16:52 | 1122872 Dr. Richard Head
Dr. Richard Head's picture

+ Peed in me pants.

That tag line is made for TV gold. 

Thu, 03/31/2011 - 19:40 | 1123385 slewie the pi-rat
slewie the pi-rat's picture

well, here i yam, laughing w/ two doc-tors!  Dr. P and i think scarily alike, at times.  here, when i read tyler's title of this piece, my first thought was:  certainly this will not a/effect the popularity of AstroGlide with jackrabbits!

Thu, 03/31/2011 - 17:02 | 1122865 Irwin Fletcher
Irwin Fletcher's picture

Very nice article, but I don't fully agree with the conclusion. I don't think he missed an opportunity to reinforce to his employees what he expects from them. This is his reputation now, bitchez. He will make money either way, and it's not likely to change the way he's portrayed in the MSM. Probably won't affect his access to the Becky Quicky either.

Thu, 03/31/2011 - 17:16 | 1122976 Infinite QE
Infinite QE's picture

"Probably won't affect his access to the Becky Quicky either."

Probably cost him more though!

Thu, 03/31/2011 - 16:51 | 1122866 franzpick
franzpick's picture

The 35 year old fed-sponsored credit-binge has made almost everyone look good, and has made a few look great.

The ongoing credit collapse will show the very best for what little they really are.

Thu, 03/31/2011 - 17:02 | 1122907 Sokhmate
Sokhmate's picture

My dirty mind conjured a KY upon reading the title.

Thu, 03/31/2011 - 17:01 | 1122913 Eagle1
Eagle1's picture

Speaking as a state securities examiner, you have to wonder how much of this took place over the years before deals were consummated and whether the SEC will look back far enough. Not. LOL

Thu, 03/31/2011 - 17:07 | 1122940 DR
DR's picture

I guess when the tide goes out Buffet is going to be caught naked.

Berkshire is nothing more than a hedge fund. Most profits made last year were due to derivative bets on stock indexes. Do ya think he had some insider hints on where the market was going?

Thu, 03/31/2011 - 17:18 | 1122985 BS_Merchant
BS_Merchant's picture

I used to admire Buffett. Thanks to ZH I'm bitter and resent his bankster ways and phoney moral highground.

 

(Thanks ZH for making me see the world how it is)

 

 

Thu, 03/31/2011 - 17:24 | 1122998 Stitches
Stitches's picture

All in a days work a BH

Thu, 03/31/2011 - 17:35 | 1123018 Ned Zeppelin
Ned Zeppelin's picture

"It’s a large sum, but Sokol is a very rich man already, and it looks like he fell into the classic trap of the rich and powerful, who so often blow their reputation over trivia."

Trivia? They pick up nickels in front of oncoming trains because they cannot stop themselves from doing it. It's called "greed," or, if you prefer a less objectionable term, "avarice."

Thu, 03/31/2011 - 17:41 | 1123036 truont
truont's picture

It's also called "You can do whatever you want because you deem yourself better than everyone else." 

That's why you're rich.

Because you're better, right?

Laws are for the proles. 

The elite are not subject to such laws.  Laws were designed by the elite as nothing more as a sheep pen.  The elite want to keep us in-line so they can fleece us when and how they desire.  They don't follow sheep-rules.  Do you follow the rules you set for your dog?  Of course not.  Neither do the elite follow laws for the sheeple.

Thu, 03/31/2011 - 17:57 | 1123061 Dr. Porkchop
Dr. Porkchop's picture

The secular elites believe they are rich because of their talent and ablility, the religious elite think it's because God favored them.

Thu, 03/31/2011 - 17:37 | 1123025 whatz that smell
whatz that smell's picture

when the President does it, that means that it is not illegal.

Thu, 03/31/2011 - 17:41 | 1123030 crzyhun
crzyhun's picture

Always thought this man was largely a buffon!!

Thu, 03/31/2011 - 17:43 | 1123040 williambanzai7
williambanzai7's picture

Martha paid for their sins as well

Thu, 03/31/2011 - 17:55 | 1123060 New_Meat
New_Meat's picture

dang, exactly where I was heading ;-) - Ned

Thu, 03/31/2011 - 17:59 | 1123070 Dr. Porkchop
Dr. Porkchop's picture

Martha the martyr. Will she craft her own crucifix with pinecones?

Thu, 03/31/2011 - 17:57 | 1123058 True.North
True.North's picture

Does anyone have that EBIX report?

Thu, 03/31/2011 - 18:00 | 1123074 israhole
israhole's picture

Dirtbag.

Thu, 03/31/2011 - 18:04 | 1123096 One_Eyed_Pony
One_Eyed_Pony's picture

FED/SEC laws only apply to the mundanes not the insider Aristocrats or Politicians... Becky Quicky is all hot and bothered by the new AXE shower GEL called: Old Insider Musk aka  AXE "Boo-Fett" GEL.

Thu, 03/31/2011 - 18:10 | 1123114 EvlTheCat
EvlTheCat's picture

And an angel get her wings!

I said that BS the other day was CYA.  Hypocrisy is so easy to spot.

Thu, 03/31/2011 - 18:23 | 1123142 Rainman
Rainman's picture

Just another small piece of frontrunning poo dropped into the retail investor's trust pool. Hardly noteworthy if you're already swimming in a cesspool.

Thu, 03/31/2011 - 18:22 | 1123143 squeal
squeal's picture

This is what these people are all about. Buffet admits to shoplifting as a youth, but tries to play it off as a fun thing as opposed to a greed thing. He talks about reputation, as opposed to actual integrity.

Well, Warren, you've got neither now.

This is what capitalism is all about. The most ruthless motherfucker will always come out on top.

Thu, 03/31/2011 - 18:25 | 1123148 evolutionx
evolutionx's picture

off topic:

iPhone 5 found in Shanghai

Images from the new iPhone 5 - world sensation at the starting holes! The iPhone will also be available in white. Everything got better again with the new Apple smartphone.  Especially the delicate antenna problems were solved. Single downer: The iphone 5 will be more expensive than its predecessor. MMnews had the chance of being the first to take a look at the device.

http://www.mmnews.de/index.php/english-news/7591-iphone-5-shanghai

Thu, 03/31/2011 - 18:33 | 1123159 Fred C Dobbs
Fred C Dobbs's picture

Every time Buffet is on CNBC holding court I see in my mind everyone from Becky to Joe to Liesman lining up to jack him off.  All with shit eating grins while doing it.  I wish I was an artist and I would draw it.  

Thu, 03/31/2011 - 18:57 | 1123215 Jay Gould Esq.
Jay Gould Esq.'s picture

Liesman is more the ball-gag type. Jam that maw, and he's yours for the paddling, Unky Warren.

Thu, 03/31/2011 - 18:34 | 1123165 bugs_
bugs_'s picture

dirty.  all of it will come out.

Thu, 03/31/2011 - 18:46 | 1123181 razorthin
razorthin's picture

Buffet is a piece of shit.  He had the chance to prevent the mortgage collapse, but guaranteed it instead.  Oh what, Beelzebub - I'm supposed to be impressed because you and your Asperger's friend Gates give a few billion away.  Big wup.  I'll be impressed when you are sending checks to charity while behind bars.

Thu, 03/31/2011 - 18:57 | 1123220 Jay Gould Esq.
Jay Gould Esq.'s picture

+1

Thu, 03/31/2011 - 18:44 | 1123182 tradewithdave
tradewithdave's picture

A fiction writer couldn't come up with a better name for the entire previous four years and if he did he would be accused of a cliche'..... Lubrizol.... ROFL.

Thu, 03/31/2011 - 18:54 | 1123214 Landrew
Landrew's picture

Buffet= Mr. Potter and we all know how that story went.

Thu, 03/31/2011 - 19:06 | 1123240 pazmaker
pazmaker's picture

sokol another greedy crooked selfish banksta

Thu, 03/31/2011 - 19:07 | 1123254 mkkby
mkkby's picture

What a pair of idiot amateurs.  Don't they know the real banksters front run from off shore accounts?  These 2 aren't even smart enough to run a going concern.

Thu, 03/31/2011 - 19:15 | 1123278 PulauHantu29
PulauHantu29's picture

"Why steal Less, when you can steal MOre."

That's the new omaha slogan.

Thu, 03/31/2011 - 19:22 | 1123314 BoeingSpaceliner797
BoeingSpaceliner797's picture

If the last three years (plus) should have taught us anything, it's that no justice will be administered to Buffett or Sokol as a result of this.  By the way, those two aren't amateur front runners, no sir and ma'am.  They know the truth of the first sentence in this paragraph and, therefore, feel no compulsion to hide or otherwise disguise what they are/were/will be doing. 

Quite simply, it's their big "fuck you" to the rest of the world.  The $3 million is just gravy.

Thu, 03/31/2011 - 19:40 | 1123380 tony bonn
tony bonn's picture

anyone expecting buffett to show moral courage could wait with the same results for a fat pig to do ballet on a tightrope above fukishima reactor 4 without becoming bbq....

buffett is a total bucket of shit....

Thu, 03/31/2011 - 22:24 | 1123841 chindit13
chindit13's picture

Nobody should make the mistake of believing the United States of America is some sort of Constitution-Declaration of Independence Land of Equality.  Think of the USA more along the lines of the Magna Carta, where the exalted class is exempt from minor irritations such as law.

In America, everyone is equal under the law, except those above the law.  Sokol and frontrunning/insider trading?  I believe the John Mack precedent will clear up the matter in a Nebraskan jiffy.  Campaign war chest sniffin' a little inflow, Barry?  Got another community bank in Illinois that needs bailin'?

Thu, 03/31/2011 - 22:56 | 1123902 Bansters-in-my-...
Bansters-in-my- feces's picture

I wonder if Buffett has ever sucked a Rothschild cock he didn't like ?

Thu, 03/31/2011 - 23:15 | 1123939 I Am The Unknow...
I Am The Unknown Comic's picture

Martha Stewart should be called upon to decide his fate.  She's a "better Man" than he ever will be.  I intend that as a compliment to Ms. Stewart who is clearly the better human being. 

I don't care if this asshole is worth 3 trillion and whoa ho ho he made "only 3 million" from the deal.  It is fraud and he should be in jail right now awaiting trial. 

(calling the SEC).....ring......ring....ring......"we're sorry, all of our available representatives are presently persecuting the most petty of crimes, by design.....please waste your time and money calling back because our voice mailbox is perpetually full, once again, by design."

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