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Buffett Subpoenaed To Testify Before FCIC Commission After Refusals To Appear Voluntarily
The jocular ukulele-strumming grandpa, who many years ago railed on and on against derivatives (see his 1982 letter here) then subsequently sold billions in notional of index puts against his earlier oh so sincere advice, has been formally subpoenaed, note - not invited, to testify before the Financial Crisis Inquiry Commission on the topic of "Credibility of Credit Ratings, the Investment Decisions Made Based on those Ratings, and the Financial Crisis", side by side with Moody's archvillain CEO Raymond McDaniel, the head of a company in which Buffett has (or is that had?) a huge equity stake, up until MCO's announcement it had received Wells Notice together with a recommendation to strip it of its NRSRO status, when it became obvious that Warren had been selling shares of Moody's in the period between the Notice receipt and announcement. What is most interesting is that Buffett had to be forced to participate in the hearing following a formal subpoena receipt, after he had declined participation on two prior occasions. We wonder, if in addition to unmatched hypocrisy and a guilty conscience, the octogenarian has anything else to hide?
As Fortune reports:
On May 12, Buffett, the CEO of Berkshire Hathaway (BRKA, Fortune 500), received a letter from the FCIC's executive director, Wendy Edelberg, saying that his views on a variety of subjects would be of "great value" to the Commission. The subjects, the letter said, would range from (but not be limited to) "the use and misuse of derivatives instruments, regulatory shortcomings, too big to fail, rating agencies and the shadow banking system."
To start the process, the letter said, the commission would like first to arrange a "private interview" where Buffett's views could be explored. And then, it continued, "we may request that you appear before the Commission at a hearing."
The letter said that arrangements for all this could be worked out with the general counsel of the commission, Gary Cohen.
Buffett had by that time watched some of the Commission's hearings and knew that the witnesses had mainly been people implicated in the crisis -- bankers, notably -- or charged with regulating it out of existence.
Knowing that he was in neither camp and doubtful that his testimony would indeed be of "great value," he decided to say no to this surprising invitation.
So, at his request, his assistant, Debbie Bosanek, called Cohen and said -- as she paraphrases it -- that "Mr. Buffett appreciates the invitation and is flattered by it, but he has a full plate with Berkshire and just can't do it."
Cohen was not pleased, to put it mildly. Ignoring the word "request" in the first letter, he told Bosanek sternly that "this was not an invitation but more of a command performance." He said that another letter -- "worded differently" -- would be coming.
There followed two more rounds of letters from Cohen. The first, on May 17, was indeed worded differently but signaled its general conciliatory tone by a heading that said, "Re: Renewed Request of the Financial Crisis Inquiry Commission."
Only at the letter's end did the threat come through: "We would prefer not to use compulsory process to secure your cooperation, and are sure that it will not be necessary."
But ah, it was. Buffett could by then see the likely end of this argument. But he was also determined to stick to his belief that the "private interview," followed by hearings, would neither be beneficial to anyone nor a good use of his time. So Buffett told Cohen in a phone call that he would not be volunteering to testify -- and if that meant a subpoena was in the cards, let it happen.
The subpoena -- that command in capital letters -- came on May 25. But the continuing, urgent wish of the commission to avoid coercion was contained in an accompanying letter, also dated May 25, that "respectfully" requested Buffett's testimony at a hearing on June 2 in New York City.
Had Buffett accepted the respectful request, the subpoena would have become irrelevant. But he did not accept, and the subpoena was therefore automatically served.
Amusingly, the Fortune author tends to have a rather simplistic view on the proceedings which obviously revolve around Buffett, and for which Moody's is merely a smokescreen:
Provided that the commission members ask intelligent questions and don't try to grandstand, this writer predicts that Buffett will enjoy the hearings as well. I also predict that, despite his doubts about this matter, the commission will gain from hearing his views. Most people do.
In other words, provided that the commission is "sufficiently smart" to understand that all Buffett has done is for the good and betterment of his fellow human beings, there will be no scandals. Because we know now what happens when people don't ask the right questions, and as a result end up with firms like Berskhire becoming one of the biggest beneficiaries of the greatest bailout ever conducted.
At least the article ends in a jocular tone.
After the hearing has concluded on Wednesday (and, no, this is not a joke), Buffett is set to make a quick getaway to Sing Sing Prison in Ossining, N.Y., where a graduation ceremony is being held for prisoners who have completed their college education. Buffett's sister, Doris, a philanthropist, will join him at Sing Sing, where she has done charitable work.
We don't share Ms. Loomis sense of irony, or should we say, we believe it is somewhat misplaced, as Mr. Buffett would ostensibly look and feel right at home at his post FCIC getaway.
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ruh roh.
Can Uncle Tom.....er sorry.......Uncle Warren bring Becky Quick as an expert witness? Or for back rubs between sessions?
Can Uncle Tom.....er sorry.......Uncle Warren bring Becky Quick as an expert witness? Or for back rubs between sessions?
Well done CD. Great stuff.
Don't expect any objectivity from someone who's 50 Billion into the current system.
So "fairly honest" Warren is coming to pontificate.
sing sing?
and I always thought that was a prop from 1930's era gangster movies
http://www.youtube.com/watch?v=x2f9JNfq1V4
*Paging Moody's Sovereign Debt devision.*
Yes; this is Warren. Yes; Warren Buffett. Could you please take another look at the US debt rating.
No; dont ask me why; im one of the largest shareholders. Just do it.
I want a report on my desk by 10 pm this evening.
Thank you.
*Meanwhile in the halls of the FCIC headquarters*
Uhhhh; guys are you sure about this.
Yeah; what can he do; that old fuck.
Yeah *sound coming from another room" .... old fuck *sound-fade*
Now there would be the mother of all prank calls. Let's hope North Korea isn't taking notes.
This guy should be in prison with Madoff, instead he is idolized.
+1
Not only idolized but given gigantic discounts to buy stocks like GS for prices no one else in the world can touch. You don't get to be mega wealthy by being nice, there have been a ton of crushed folk stepped upon by the likes of Mr. Buffett.
How many have you crushed to get as wealthy as you are?
I'm by no means wealthy. I do ok and bring in a decent salary but I'm far, far away from 7 figures.
No shit. Buffett is a douchebag.
Take me back to 1962 and give me $100,000. I'd turn it into a lot of dough, too.
+1 trillion SDR's for "Douchebag". has yet to become not funny.
I'm obviously behind on my Buffet-knowledge. What exactly has he done to deserve the slammer? (serious question)
Behind every great fortune is a great crime. "Outsourcing" american jobs to China is a crime. Denouncing derivatives, when secretly you are trading them, is a crime.
And last, but certainly not least, drinking Cherry Coke is a capital crime.
Behind every great fortune is a great crime. "Outsourcing" american jobs to China is a crime. Denouncing derivatives, when secretly you are trading them, is a crime.
And last, but certainly not least, drinking Cherry Coke is a capital crime.
Buffett will take the fifth.
Buffett knows dems. Knows dems use
these subpoeanas to create perjury
traps. Doesn't want a perjury trap.
Must take fifth.
he is a dem (card carrying) and sits on some of Obama's economic whatevers - this will be softball (the subpoena just makes it look legit)
Buffet...LOL.
Warren (is that a senator in your front pocket or are you just glad to see me) Buffet.
Buffett will require a high table. High enough that Becky Quick can fit under it and suck his crusty, wrinkly old nuts will he testifies.
The idea that Congress can arbitrarily call people before it to participate in political kabuki is absurd.
Generally there is very little Congress can do to someone who refuses to participate, except in cases of national security. Would be nice to see Buffett just ignore them.
So how come Karl Rove is still at large?
Yes, Prison! Play oracle huckster here, Wench!
http://www.thecrimereport.org/wp-content/uploads/2010/03/prison_clo2-1.jpg
This is funny.
Buffet has been obsessively telling people about how virtuous it is to pay taxes. And how every business person should be grateful to the United States Government for providing for our prosperity.
Now they repay the favor with a lynching.
Live by the sword; die by the sword.
The wheels on the bus go round and round...
Buffet is a hypocrite.
During the 2008 crisis, he was making "special" investments (preferred stock with 10% interest) in the Wall Street firms, then shilling for the bailouts to make his investment choices golden.
While using trusts and other tax shelters to protect his fortune, he constantly bitching that tax rates aren't high enough!
F#$@ Buffet!
Buffett helped Obama get elected. That makes him a full insider. The questions will be soft and deferrential. He'll walk away smelling like a rose.
Obama's SEC backstabbed GS and the left-wing press leaked a Bob Rubin mistress story. It's knives out... they're all killing each other.
Thats exactly whats going on..
Looks like it. Apparently Geithner now refers to the Wall Street CEOs as "the warlords". Such ingratitude! I'm just not sure from whom.
The questions will be soft and deferrential. He'll walk away smelling like a rose.
Not exactly true. He may very well become the largest global Head on a Pike replete with a safe landing/exit-strategy, to wit, his succession plans are already in place.
When the Oracle of Oz goes, its every man for himself - for the Sheeple will have no choice but to awake sober-shock from their sweet dreams, fingers clutched to the lint under their matresses and a rush to the toilet to purge the delusions of the American Dream in a Shamanistic-style ritual - at both ends.
There has to be "news" with every leg down - to justify the imminent derivatives implosion.
The house never loses and Buffet is/was always a welcome guest, but he doesn't make the rules and is subject to the same boom-bust cycle like everyone else.
What a horrible job to be the Puppeteer of the Fed. Maintain control of house/$ by printing ad infinitum and sacrifice your guests in a spectacular "Look over there" show.
If Buffet gets burned at these hearings (and he has to once you open that Pandora's Box) expect Americans to cash in their life insurance and stop paying health, life and car insurance next.
Dow 8,900 in June - but WTF do I know.
This is going to be hard for some of you know it alls to believe. First, Buffet no longer makes the decisions about investments within his vast holdings. Second, Buffet is in the early stages of dementia. Third, the people who control his empire have said that they do not want him on TV for more than 5 minutes and, he can only express an opinion on one topic during that five minutes and all the interviewer may do is listen after asking the question. The people who control his empire are going to prove to the commission in the private interview that he is not capable of delivering the dialog of which they are looking. It is sad, but dementia does not care how important or rich a person is. I am sorry to have to tell some you people a fact about growing old.
I freaking knew it..When he was telling everybody to buy the dips it was just the crazyness working out of his grumpy ass...
Is this like one of those old mafia dons who suddenly develops a scorching case of Alzheimer's right before the trial?
((....do not want him on TV for more than 5 minutes....))
Condescending apologist are a sad lot: explain to the courtroom this filibuster routine would ya?
http://www.youtube.com/watch?v=A0mNKh7lYE4
Now, there ya go waterdog, I told ya drinking Cherry Coke is a Capital Crime. Now ya gots me feeling sorry fer poor ol Warren baby.
looks like WB is going to get the same treatment JPMo got near the end of his life. guess being reborn into a folksy midwestern grandpa personality didn't work out much differently this go-round either.
Inquiring minds would love to know what was discussed at this meeting...
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5363613/Oprah-Winfreys-charity-challenge.html
which followed the now infamous buy stocks plea
http://www.nytimes.com/2008/10/17/opinion/17buffett.html
Thanks for reminding me:
Be fearful when Warren gets greedy. And now he has his own train to carry all that Chinese crap to his stores- thereby putting more Americans out of work.
I don't give a damn how much money he controls, but I care a lot about those who sell out their own country.
How about doing the right thing Warren and Insource all those American jobs you outsourced.
No worries. He's friends with Bill Gates and when bill gates doesn't get his way. He totally gets tough. He doesn't just throw a tempertantrum like a 3 year old or anything. He's badass. So with friends like Bill he should strut in there all confident that people got his back. Plus oprah's minions will protect him as well if she summons them with a comeback show.
Fuck charity. Fuck fake philanthropists.
Fuck the memory of Andrew Carnegie.
FUCK 'EM.
This administration is in desperate need of money and Grandpa has a bunch.
Just posted a EURO monthly chart ...
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
The markets are being buffeted Warren, are you saying you had no warrening this might happen?
Quick Betty, can you get me some roast warrump from that nice buffet?
Quite a sperad eh, betty!
Heard the spreads are getting wider...
Ehhh...hhhh...hruuummmmph!
Why would he worry about this? He didn't run Moodys. He might look bad but they aren't going to be able to pin anything on him.
The Kabuki Theatre of the FCIC demonstrates the farse that it is. If this were a true investigation the FCIC wouldn't care one lick about Buffet's, or anyone else's, opinions. When are they going to look at the fraud and corruption that is Fred/Fan, and the government mortgage/housing policies that led to this house of cards.
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