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Buffett Takes Some Anti-Hypocrisy Pills, Realizes Subsidies Are Actually Bad
The man who has benefited more from governmental subsidies for financial companies (which also happen to comprise his core investments) than anyone else, Warren Buffett, has decided to cry foul and complain to the SEC over what is quickly becoming a war in the news wire world. Turns out, his Business Wire firm, which is one of the top two distributors of official news and information from public companies, has realized that subsidies are actually not all that cool, especially when one is not on the receiving end of wasteful capital spending. As a result Buffett has come to the brilliant conclusion: "Business Wire contends that subsidization would be anti-competitive." We wonder how long it will take before Mr. Buffet concludes the obvious - that government subsidization of his pet Wall Street firm Goldman Sachs has very much the same anti-competitive results? We are not holding our breath. Warren has once again proven that while the word hypocrite may be a tad strong in describing him, it does serve quite well.
In an article earlier, Securities Industries news reports:
Nasdaq OMX Group has proposed revising and increases several types
of fees to apply for and maintain listings on its Nasdaq exchange in
the United States, including a annual fee that will levy an additional
$5,000 annually on approximately 75% of its listed companies and fee
increases applicable to listing ADRs that will range from $8,775 to
$20,000.
Business Wire alleges that Nasdaq seeks the fee
increases to cover unspecified cost increases while it is attempting to
attract new listings “by offering millions of dollars in ‘free’
information dissemination services bundled into the listing fee.”
One of those services is GlobeNewswire, which Nasdaq acquired in 2006.
GlobeNewswire competes with Business Wire in putting out press
releases, investor communications, photos, and regulatory filings for
publicly traded companies.
But BusinessWire and PR Newswire are the giants in the field, splitting
more than 80% of the market. BusinessWire is a wholly owned subsidiary
of Berkshire Hathaway, the corporate holding company headed by
billionaire Omaha investor Warren Buffett.
Business Wire says the fee increases are “apparently intended to help
subsidize” ancillary services that it bundles into its listing service
to lure companies away from rival exchanges. “Business Wire strongly
believes the public interest would be best served if either the Justice
Department or SEC investigate this before the SEC rules on Nasdaq’s
proposal,” said Roger Myers, attorney for Business Wire and partner at
Holme Roberts & Owen LLLP.
Oh really Warren? In turn, Zero Hedge, and the broader American public strongly believes that the public interest would be best served if either the Justice Department or SEC investigates Goldman Sachs (and other remnant Wall Street firms) for comparable anti-competitive practices before you are allowed to extract even one cent of equity from your numerous investments in both Goldman Sachs and all other firms currently benefiting from generous and seemingly endless government subsidies.
We have forwarded this post to Christine Varney at the Justice Department.
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Bailed out Buffett: Buffett firms got $95 billion of bailout cash
http://rawstory.com/08/news/2009/08/05/bailed-out-buffett-95-billion/
Bitch bitch bitch, I've had enough of this stuff, poor old fella needs a hand up, who is to begrudge an old adulpated duffer a little help
I used to like that nice old man. Now I see that he is scum just like the rest of them. I hope he dies soon.
That's a little strong. Hope he's around to see the collapse of all this.
You're right. I now hope he has a massive stroke, lives in a vegetative state, and gets to see the complete and total economic collapse of the USA he laid the ground work for.
See there. Maybe he could watch re-runs of his TV specials on how all us Amerikans need to pay higher taxes.
thats what happens when you start hanging around with the anti christ bill gates.
Jobs, that you?
Hope you join him there...
I don't want millions of people to suffer just to watch him suffer. I'll accept a fall from grace in public's eye. He can then go to hell for all I care.
kick him while he's down...hahaha!
hey dude- tell us how you really feel- lol
No you don't Michael. Buffet is 80 years old. He has out lived 99% of his buddies. He is beginning to realize that in the end life sucks and no one cares. All those times he hoped that there was no God, he is now trying to hedge that hope in case there is one.
Buffet is succumbing to old age. Only the people who deal with him every day can see the decline in memory. How long will it be before his money is talking because he cannot?
Sorry to repeat myself but:
Non-steroidial annual homerun king:
Roger Maris - 61* (extended season - 1961)
Lifetime investment king (by average annual return):
Warren Buffet - 20.3%* (lobbied for and received govt. bailout - 2008)
"remnant Wall Street firms" LOL
Makes perfect sense in "Opposite World".
How Warren Buffet is labeled as a great investor is beyond me. If you are managing money and lose 40+% in any year then you are no legend. Period. If you set up a fund to be dumb enough to require 95% long only equities or more at all times then you are no good investor nor trader.
Too many guys have made it in all markets to put Warren in the same boat. He is the king of averaging down in the greatest bull market inflationary run perhaps of all time.
What he is really saying is "Subsidizing my companies is the pinnacle of the American Ideal. American Pie, Baseball and Buffet Bailouts. However subsidizing out my competitors is an uncompetitive practice and will bring ruin to America"
Short version "Give me money!"
Buffett is another piece of shit.
Puts on that lovable grandpa act, draped in the American flag, proclaims "capitalism" is his religion, and then phucks American citizens up their ass by sucking out the wealth of this country with friends at the squid and the Fed.
You're a disgrace Buffett.
And to think that I used to respect you. Boy, I truly am an idiot.
A lot of us did. I was told to look up to him in undergrad. Shit I'm still getting fed a line about how "great" he is in grad school. Prof looks at him like he can walk on water. Nothing special there, if I had big political connections I could loot like Blackbeard too.
I would love to guest lecture in some of these grad schools about what is really going on.
If you have never watched it, look at the scene from the movie (think it is "back to school") where Rodney Dangerfield is a wealthy b'nessman who goes back to school. The Ivy league type professor is going into the academic bullshit about a business plan, Dangerfield interupts him and describes how it really works....it is absolutely hilarious and true.
Mellon: "A widget? What's a widget?"
I'll keep that in mind. I'm going to be president of one of the school clubs next year and I'm going to be setting up our visiting lecture schedule. Might need to slant it make it have something to do with the legal profession but we have bent the rules before :) Last year we got Walter Block to come in and that was excellent, chewed up one of the profs that consults for the Richmond Fed.
And yes love that movie and that scene is classic. Love the Kinison scene "SAY IT! SAY IT!" always wanted a prof that was fired up like that. Had to settle for an amazing Tax prof, all he did was talk about loopholes and how to stick it to the man.
Here's the clip:http://www.youtube.com/watch?v=YlVDGmjz7eM
Make a titan. Get a free ticket on the titanic.
Well said, at a time when he could have been defending capitalism he stepped up to the government trough like the rest of them.
You could argue that he was doing what was best for his investors, and that is true, but that makes him no less a scumball.
I personally have no respect for the man.
And with billions of cash sitting there on the Berkshire balance sheet-- he simply didn't need the bailout money. He had alrady figured out though General Re that derivative exposure was a big no-no, had more glancing, indirect exposures (esp insurance/bond portfolios).
That's probably what puts him on the scummy side of my moral ledger.
We have forwarded this post to Christine Varney at the Justice Department.
Good.
This is an excellent piece Tyler...thank you.
In my 50+yrs on American soil, I am amazed at how every single day brings out even more lies, fraud, theft from our so called American leadership.
Thank goodness you did not send this to that worthless piece of shit, squid sucking lacky, Mary Schapiro, at the SEC.
+100...Should by some miracle Mary Shapiro be thrown under the bus...Her MD position as head giving legal chief will await her at Vampire Squid.
Can't they just call Joseph Facciponti? I heard he works weekends and holidays.
TD et al, please do a report on this one should you find the time...i think there will be a story here:
NYB -- regional bank stock, has had a strong bid recently. Today it opens higher & holds the gap up, then really starts ripping at 3:20pm, finishing the day +5.29% on roughly double average volume. Also, 8,933 of the Dec 12 calls traded vs. 2,244 OI, finishing +300% on the day. I don't have the precise option stats, but this thing never trades even 1K calls on one strike in a day.
This is a name that does not move much, especially not 5%+ in one freaking day. Somebody knows something, before it has hit the tape...
good eye....i used to follow the smaller New York banks closely but have stopped. they are an old bank originally out of Queens in the city now HQ'ed out on Long Island as I recall.
the spike is outrageous as you noted and you are correct on the options activity.
They are either doing a merger of equals type of thing with another NY regional/local or Goldman is going to try to legitimize their "banking" charade by buying a bank. NYB would be perfect for GS because NYB is not that big, is considered fairly well run with stable management, they are concentrated in NYC and Long Island.
My long shot call is that a REIT (or "affiliated" parties) is taking a big stake...
No fellas, this is lawn mowing contractor, (New York's Brightest) headed up by Barnake getting his nest vocation lined up. Not to worry he'll be outon his John deere soon mowing your lawn - always cut the tall grass first!
here's your answer...NYB is the new proud owner of the FDIC seized AmTrust.
thanks...i see the story on the FDIC website now, though there is no timestamp. obviously some traders knew ahead of time...what a complete crock of sh!t our markets are, i wonder if they'll go after anyone in this case. the stock is getting bid up a bit now in the after hours, but clearly most of the move already happened. those Dec 12 calls should be up at least another 50% or so come Monday...nice return for some punk insiders.
thanks...i see the story on the FDIC website now, though there is no timestamp. obviously some traders knew ahead of time...what a complete crock of sh!t our markets are, i wonder if they'll go after anyone in this case. the stock is getting bid up a bit now in the after hours, but clearly most of the move already happened. those Dec 12 calls should be up at least another 50% or so come Monday...nice return for some punk insiders.
Why is there never a true surprise - what is it with insider sneaks - putzying around with stocks - on the serious side do we have records of who these buyers are? How come I never get phone calls, or emails or texts when something free is happening? Money for nothing chicks for free!!!
These are really 2 different issues. Business Wire is alleging illegal anti-competitive behavior on the part of Nasdaq. Their claim is that Nasdaq is using the strength of its market position to jack up fees on listing and bundling it with "free" offerings that compete directly with Business Wire's offerings. It is more akin to lawsuits like Netscape against Microsoft than to the government's various loans and subsidies to Goldman Sachs.
The old man is losing what's left of his mind.
Buffet has charm and that good ole boy aura.
He's a classic midwestern salesman like Billy Boy CLinton.
SMile and Lie! Lie and SMile! HEH! It's okie dokie.
S'how business is done.
Buffet was on tv a while back spinning how he was gonna do us all a favour by promoting wind farms n such.
Truth was he was using the wind farms as a cover to land grab a pathway for underground WATER pipes to houston n such.
Seems 'ole Buffet knows that in a few years Water ain't gonna be free and he's looking to corner that cow now.
-MobBarles
'epic fail'
Can you imagine being close to death and still thinking like a shithead. Fuck Houston and their water, build another town somewhere like New Orleans with plenty of water.
When Berkshire files for bankruptcy in the next decade, will anyone write about Buffy anymore? Will CNBC make a pilgrimage to the annual meeting in Omaha? I sure hope so. Some people feel sorry for fakes once they are exposed. Not me. I enjoy truth exposed. Beauty is truth, truth beauty.
Come on Cursive. I used to be a Buffett acolyte and have become very disenchanted with him, but on what basis do you think Berkshire will file for bankruptcy in the next decade?
Agreed, there is no chance of Berkshire going down as long as The Fed Reserve can still shoot out dollars. We are in the era where if you are big the only way you can fail is by pissing off the wrong guy. If Fuld had a better relationship with Paulson, Lehman Brothers would still be in business.
I take a lot of pride in things that I post and I value your opinion so, in truth, I admit I am only perpetuating what others have speculated. I have not done any of my own research or delved into the research of those whom I have read. What we do know is the opaque nature of all of these financial firms. AIG wasn't widely viewed as a problem until it was too late. Afterall, it was only last year that 4 executives, including the ex-CEO, at Berkshire's General Re insurance unit were found guilty of the same side letter practice that AIG had practiced. Another executive got a slap for turning evidence on the other 4. The convictions cost the reigning CEO and Buffett replacement hopeful, Joseph Brandon, his job. I have known Buffett as the charlatan that he is for some time. The man is walking, talking hypocrisy. He calls derivatives "weapons of mass destruction" yet his operating companies are large writers of said contracts?
I go to Sturges every summer, me and Warren "show out tits"
Is it so bad that Buffett took out a hedge against corporatism?
warren buffett doesn't believe a god-damned thing he says....he says whatever is expedient to fooling the masses, the government, and his own wife....he is as full of shit as obamaturd....
He has some offspring but is he married?
I believe that this would be a flashing neon warning sign that the top is about in & that today US$ reversal might just be the first leg up.
Hang in there Snoopy!! Who the hell buys a stock at those prices anyway, when I was a kid Jersey was really big numbers (1,200 or something I think), and then in the late 60's seventies ibm was 360 or so - but Buffet's stratosphere numbers are really bizarre, particularily for a guy who runs a boring business and makes lightning strike buys and subsequent kills of companies - when he hooked up with Gates you had too....
I call bullshit on Uncle Warren. If subsidies are bad....why did he just outright buy the rail road. He ain't stupid....some point down the line....they will be BIG recipients of such subsidies!!!!
I call bullshit on Uncle Warren. If subsidies are bad....why did he just outright buy the rail road. He ain't stupid....some point down the line....they will be BIG recipients of such subsidies!!!!
I had trains when I was a kid, American Flyer from New Haven CT, neater than Lionel, but less popular, the old guy wants a railroad what is the harm?
Buffett's railroad investment "betting on the future of America" is a big concern for me. The concern is what WHAT future scenario is he betting on, if you know what I mean.
He's betting on peak oil creating an end to the auto and highways as we know them. Rail and water will be the only viable modes of mass shipping and transportation.
he has told you explicitly, "there will be no tolerance for deflation"
We can respect him for what he has achieved but it's time we stop admiring him for his unquestionable sage wisdom that his followers now bestow upon him. He's become an icon. Whenever there is trouble, the calming reassurance of grandpa Warren is always trotted out as though he is infallible. Soon it will be time for him to stay behind while the rest of the tribe moves on.
Back to the tribe, is this some kind of ethnic thing?
In days of old when it was time for the natives to pick up camp and follow the caribou, elders who were too old to travel became a liability to the tribe. At this point they were unceremoniously left behind to feed the wolves and the ravens. Seems like a good way to go actually. Better than having your children or some disgruntled nurse change your diapers while you are held captive in an old age home. Old Warren is doing well for himself but he should start thinking about those smiling carefree children who will be carrying the weight of the debts that are being foisted upon them.
The same sage Greenspan was in his heyday?
WB - is a big part of the problem. Meaning, why this country is going down.
Buffett is a lying old bastard who frequently shills for CNBS, probably in exchange for favors from Becky Quick.
TD,
Thank you for pushing this back.
Pressure on "Authority" to perform in a balanced and fair way is building due to what is being done @ Zerohedge & elsewhere.
The greatest power is informed people. The "Authorities" don't give a rats ass about anything unless there is sufficient motivation. Informed people calling a spade a spade and demanding action will force "Authorities" to at least pretend to be accountable to the Public..
There is a case being heard in front of a little court that could also be of relevance to this here post, but I'll leave it to the (much smarter than me) legal eagles to figure out just why...
http://www.scotusblog.com/wp/in-defense-of-the-presidency/
I hear Walmart has a sale on single earings.
I really appreciate posts like this on ZH. First, you don't treat Buffett with kid gloves, like so many financial writers feel they must. Second, you point out hypocrisy. Noting hypocrisy is valuable, and is a skill, as we know, few possess (or are willing to use); and noting hypocrisy from "respected" financial gods is even better.
Buffett's best buddy Bill was supposedly a master of monopoly; good thing they didn't own competing businesses or Buffett might have had to choke down his "my business can't compete in a free market" tone here, for the sake of the friendship 'n all.
WB is a charlatan. The guy's made plenty of bad bets the past five to ten years. He's basically doing everything he can now to preserve his "Oracleness" but as this country's economy implodes so goes WB's reputation.
Buffett is a D-Bag...
http://www.financialsense.com/editorials/collum/2009/0129.html
i don't understand why anyone doesn't like buffet - His interest may harm yours, but he is much more philantropic and spendthrift than you probably are...