David Sokol, Supposed Successor To Buffett Resigns From Berkshire, Possible Lubrizol Frontrunning Implicated

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Wed, 03/30/2011 - 17:26 | 1118972 LostWages
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Greed Bitchez!

Wed, 03/30/2011 - 18:01 | 1119089 Filthy Rotter
Filthy Rotter's picture

So how much did Dave Sokol make from this...anyone done the math?

Wed, 03/30/2011 - 18:12 | 1119128 bigdumbnugly
bigdumbnugly's picture

"Therefore, if questioned about this matter in the future, I will simply refer the questioner back to this release. "


hehe.  i gotta remember that one.

Wed, 03/30/2011 - 18:16 | 1119150 Monkey Craig
Monkey Craig's picture

Worked with somebody who had the balls to email the legal department:

"your lack of reply will confirm my opinion" on a transaction.


He doesn't work there anymore.

Wed, 03/30/2011 - 18:17 | 1119158 Don Birnam
Don Birnam's picture

I sense a no-holds-barred demonstration of unabashed Buffett rump swabbery is about to be let loose by none other than Uncle Warren's official cheering section, CNBC.

Becky ! Don the kneepads ! Put a shine on this tarnished old cad!

Wed, 03/30/2011 - 23:37 | 1120182 Yits and the Yimrum
Yits and the Yimrum's picture

B-Cups is going to be havin a save Uncle B's reputation bake sale

and the product will contain the usual healthful HFCS and aspartame; so buyer beware

Wed, 03/30/2011 - 19:09 | 1119390 I think I need ...
I think I need to buy a gun's picture

its amazing how everyone comes right to buffetts defense......

Wed, 03/30/2011 - 21:55 | 1119907 NOTW777
NOTW777's picture

you wont see a becky quick special on this

Wed, 03/30/2011 - 18:27 | 1119213 Filthy Rotter
Filthy Rotter's picture

Interesting link from March 14th...


And from the story...

Robbins Umeda LLP, a shareholder rights litigation firm, is investigating possible breaches of fiduciary duty and other violations of state law by members of the board of directors of The Lubrizol Corporation (NYSE: LZ) in connection with their efforts to sell Lubrizol to Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B).

On March 14, 2011, Berkshire Hathaway announced it has entered into a definitive merger agreement to purchase Lubrizol through an all-cash tender offer. If the transaction is completed, Lubrizol shareholders will receive $135 in cash for each share of Lubrizol common stock they hold.

The investigation seeks to determine whether Lubrizol's board of directors undertook a fair process to obtain maximum value for its shareholders. Notably, analysts have set a target price for Lubrizol as high as $148 per share. Furthermore, on February 2, 2011, Lubrizol reported net income for the fourth quarter 2010 that beat Wall Street expectations.

Front running and this from the board of directors?  Fakked up!

Thu, 03/31/2011 - 06:17 | 1120627 TexDenim
TexDenim's picture

This sounds solid to me. I just read all the WSJ comments about this and not a word about Robbins Umeda. It's also clear from the Berkshire Hathaway guide for CEOs that Sokol failed to live up to Buffet's "standards". Let's see what Becky (I love you Warren) Quick has to say to CNBC this AM.

Thu, 03/31/2011 - 09:48 | 1121104 chrisd
chrisd's picture

There is a press release from some lawfirm every single time there is any acquisition, no matter what. Referring to this as evidence of anything is akin to me saying you are a jerk because your ex-girlfriend / boyfriend saying so.

Wed, 03/30/2011 - 21:36 | 1119835 kubrick007
kubrick007's picture

3 million. if i had to guess he is prob worth several 100s of millions as buffett has talked so highly of him in the past. which begs the question...does anyone think the guy really would bother to go after what is basically pennies to him... 

Thu, 03/31/2011 - 10:20 | 1121212 Chuck Walla
Chuck Walla's picture


Wed, 03/30/2011 - 18:19 | 1119165 SparkyvonBellagio
SparkyvonBellagio's picture

Ol' Front-Running Warren now in a pickle.

Wed, 03/30/2011 - 22:10 | 1119962 Freddie
Freddie's picture

It is f***ing front running and Buffett saw no problem in it!  Warren is a Obama and Goldman boy.

Thu, 03/31/2011 - 08:04 | 1120750 Translational Lift
Translational Lift's picture

How can anyone be surprised by any of this BS.  Just another chosen one, squid alum...........

Wed, 03/30/2011 - 17:32 | 1118973 AN0NYM0US
AN0NYM0US's picture

"I have held back nothing in this statement."



that's reassuring, do you end all of your correspondence that way?

Wed, 03/30/2011 - 17:49 | 1119056 InconvenientCou...
InconvenientCounterParty's picture

It's in the same category as a press release that POTUS signed a secret order.

Wed, 03/30/2011 - 18:01 | 1119093 Cognitive Dissonance
Cognitive Dissonance's picture

One of the most bizarre statements from anyone I have ever seen. Part CYA, part setting the record straight, part edging for the door while smiling for the cameras.

Does this mean the world will finally recognize the Oracle for the black vulture he really is or did his fall guy just fall on the sword? I wonder if Buffett will be calling Becky Quick to arrange TV coverage for his world wide "forgive me but I'm just an old fool" tour?

<sigh> A man can dream.

Wed, 03/30/2011 - 18:12 | 1119130 Monkey Craig
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I, too, was struck by how strange this was. I thought that maybe so much was running through Buffett's head (Japan tragedy, Lubrizol acquisition, trip to India) that he wanted to put something on paper and then forget about it.


Wed, 03/30/2011 - 18:41 | 1119269 Filthy Rotter
Filthy Rotter's picture

"forgive me but I'm just an old fool" tour?


Ahhhh...the poor auld fakker...he's just a half-wit.

Wed, 03/30/2011 - 17:29 | 1118976 TruthInSunshine
TruthInSunshine's picture

Is this real?

That Buffet wouldn't endorse this most clever and cunning behavior, I mean...

Wed, 03/30/2011 - 19:02 | 1119352 smlbizman
smlbizman's picture

im with you..i figure this should move him to the front of the class...

Wed, 03/30/2011 - 22:15 | 1119980 Freddie
Freddie's picture

He loves Goldman and the Kenyan.  Buffett is an evil old man.

Wed, 03/30/2011 - 17:27 | 1118977 sysin3
sysin3's picture

Some truly are more equal than others.

Wed, 03/30/2011 - 17:27 | 1118978 cossack55
cossack55's picture

A real oracle would have seen this coming.

Wed, 03/30/2011 - 18:24 | 1119199 long juan silver
long juan silver's picture


Or bot at $25 in 2009 thereby frontrunnung the frontrunner.

Wed, 03/30/2011 - 17:28 | 1118980 Horatio Beanblower
Horatio Beanblower's picture

Free and fair markets, obviously...


(Reuters) - Shares in Bank of Ireland (BKIR.I) and Allied Irish Banks (ALBK.I) will be suspended from trading on Thursday on the Irish stock exchange ahead of the publication of crunch stress tests. - http://www.reuters.com/article/2011/03/30/ireland-banks-shares-idUSWLA682320110330

Wed, 03/30/2011 - 17:35 | 1118996 williambanzai7
williambanzai7's picture

Another day in the world that lets Mozillo walk and sends Martha to the Big House. Crony Amerika! Will he be joining the Libyan Foreign Minister in London?

Wed, 03/30/2011 - 17:33 | 1118997 ZackAttack
ZackAttack's picture

“As I have mentioned to you in the past, it is my goal to utilize the time remaining in my career to invest my family’s resources in such a way as to create enduring equity value"


Resigning to spend more time with our money.

Wed, 03/30/2011 - 17:50 | 1119061 Korg
Korg's picture

Create enduring equity value eh??

I knew he was buying bullion!!

Wed, 03/30/2011 - 17:34 | 1119001 TruthInSunshine
TruthInSunshine's picture

"If questioned about this matter in the future, I will simply refer the questioner back to this release."


Translation = It's good to be the King.

Wed, 03/30/2011 - 17:36 | 1119006 Dr. No
Dr. No's picture

Translation = This release is sooo vetted by lawyers and if i speak about anymore details, I am screwed.

Wed, 03/30/2011 - 17:40 | 1119021 TruthInSunshine
TruthInSunshine's picture


...that too.

Wed, 03/30/2011 - 17:44 | 1119042 Thomas
Thomas's picture

I think your supposition is correct. Moreover, I thought it made sense to lay it out and then stuff it deep, all in one letter.

Wed, 03/30/2011 - 17:37 | 1119007 Mr Anderson
Mr Anderson's picture

ZH Community Bank (ZH CB)

The first full reserve banking institution in America.

The full faith and credit of the United States does not mean what it did one day. The FDIC has to continually go back to the federal government for more money to cover the deposits and savings of the public. This tax upon the people of the united states must end. The ZH bank does not the FDIC because your money is truly safe with us.

Every dollar of deposits you remove from your commercial bank and place with us, $10 of commercial paper is removed from the system. For every dollar of savings or CD's your remove from your commercial bank you remove up to $100 in commercial paper from the system.

How does the system work?

The ZH CB is a 100% online community bank. To transfer your current funds all you need to do is ETB (electronically bank transfer) them into your account. you can set up ETB's for all your monthly bills, your paychecks, even student loans. To pay for your daily purchases you will be issued a debit card linked to your account. There will be no possibility of overdraft so it is advised to keep a credit card in case of emergencies. You will still have the merchant credit processing fees. You will not have a checkbook. If you need cash, it is advised you keep can account open at a commercial bank. ETB the money to your account then use the ATM. Another option is each time you make a small purchase make sure to get cash back. It is always recommended by ZH to have a 6 months of hard cash on hand.

What are the costs?

The bank is non profit running at the most minimal of operating expenses. We expect a yearly fee of under $20 to cover our server maintenance and debit card issuance's and a minimal number of full time employees. If you use an ATM of a commercial bank with your ZH debit card you will likely incur the fees associated with that bank.

Why should I join this bank?

The community bank is 100% transparent. Each day you can log in to see the amount of deposits and withdrawals from the bank. Each employee's salary is posted online. The bank makes no loans so your deposit is fully backed. There is no risk of losing your deposits during a credit or financial crisis. If you feel your commercial bank is going to go under during a deflationary period, safety is is simple as few clicks away. During periods of inflation the purchasing power of your money will lessen to an extent but the bank cannot effect the decisions of the federal reserve in this case. Though you can talk to your friends and advise them invest their savings in the ZH CB in order to lower the M2 money supply, thus reigning in the money printing effect of the federal reserve.

What if I want lend money?

We advise you ask a commercial bank for the loan and pay their resulting interest rates. the ZH CB is meant for people who do not wish to live in debt, who want to protect their assets. ZH CB still advises you to purchase precious metals to hedge against inflation.

What if I want a return on my money?

ZH CB advises you to invest in equities, commodities, treasuries, etc. The bank will still be here when the market is to volatile or you decide to cash out.

Can I transfer my 401 K or mutual funds into the ZH?

ZH is the safest place for your 401K when it comes time to retire. Sudden market changes will not change your retirement plans (like your 40% losses in 2008).

What will happen if many people put their money in ZH CB?

If enough people put their money in the ZH CB at one time it could potentially create a banking crisis for the commercial and investment banks. This will not be your worry if you have already placed your money in the ZH CB. Putting your money in the ZH CB can also be seen as a vote of no confidence in the federal reserve & TBTF banks.

Can I place my business accounts with ZH CB?

Yes you can place your business accounts with us. Municipal and Small governments are welcome as well. If your business needs loaned cash to stay afloat you may be better off keeping your funds with a commercial bank.


Tyler and community, thoughts?

Wed, 03/30/2011 - 18:10 | 1119116 ebworthen
ebworthen's picture


Nice idea, but it is like the Food Bank that encourages illegal immigrants and keeps prices high at the retail stores.

With TBTF there is no such thing as an honest bank - besides - if you can't run T.V. commercials 24/7 and have iPhone apps and "rewards" programs the Millenials will never know you exist.

You could call it "Linux Bank" but it would not end the hegemony of the "Apple" or "Microsoft" banks.


Thu, 03/31/2011 - 01:08 | 1120389 Mr Anderson
Mr Anderson's picture

I read on here that 1-2 % of people are prepared for any type of governmental collapse. Most people it seems on ZH are. That is quite a base of people to use the bank. Think of the producers of society who are tired of giving all their profits away to the banks. Think of all the Ron Paul supporters during 08 election that want to end the FED. It would be an excellent way to put your money where your mouth is. Not only that but protect it.

Wed, 03/30/2011 - 18:19 | 1119159 MachoMan
MachoMan's picture

I actually have an idea similar to this except with physical cash/PMs...  It can be done for less than seven (7) figures I think...  suitable locations abound...  the biggest problem I see is finding people to let you store their money and getting them to pay you enough to cover the insurance premiums...  you could handle hundreds of billions of dollars for little or no outlay in infrastructure...  take an administrative commish and watch the banking system implode.  Do you want the FDIC's guaranty or the promise of a guy who actually has your shit?  Return of capital not return on capital...

Thu, 03/31/2011 - 00:17 | 1120290 ebworthen
ebworthen's picture

Problem:  limitless supply of taxpayer money for FDIC and FED

Thu, 03/31/2011 - 01:06 | 1120381 Mr Anderson
Mr Anderson's picture

FDIC goes to Federal Govt for more money. Federal Govt. has to loan that money from somewhere. Currently the FED.

This is insurance, insurance only works if its rarely used and not by everyone.  SHTF and FDIC isn't worth spittle because the Govt won't have the $$ to bail everyone out at up to 250K.


Thu, 03/31/2011 - 09:42 | 1121072 MachoMan
MachoMan's picture

I would presume those who are in dollars are well aware of the bernak...  but, if you have the capacity to store large amounts of physical cash...  you also have the capacity to store other...  things of financial interest.

Wed, 03/30/2011 - 23:43 | 1120199 CitizenPete
CitizenPete's picture

What's wrong with James Turk's Gold Money?. 

Thu, 03/31/2011 - 05:15 | 1120594 1984
1984's picture

I have to chuckle.  You obviously know shit about how money works. 

The Bernank prints the money.  How does your ZHCB lower M2?  Burn it?

Wed, 03/30/2011 - 17:38 | 1119013 Sad Sufi
Sad Sufi's picture


I always enjoy your puncturing of the facad of the Kindly Tycoon from Omaha, to reveal the corrupt rotten center inside. This is a great way to remind us that all of the dealers in Wall Street product stink, even the one's who have the reputation of being so smart and beneficent.

Wed, 03/30/2011 - 17:38 | 1119014 augie
augie's picture

if Buffet goes down i dont know what i'll do. First Ms. Cleo now Warren?! who will advise me!?! SOMEBODY TELL ME WHAT TO DO, I CAN'T POSSIBLY BE EXPECTED TO THINK FOR MYSELF!

...the caps is me yelling fyi.

Wed, 03/30/2011 - 17:39 | 1119018 camoes
camoes's picture



Wed, 03/30/2011 - 17:40 | 1119028 ziggy59
ziggy59's picture

friggin speed doesnt kill....GREED kills!     so is there insider trading implications being offered or what?

Wed, 03/30/2011 - 17:40 | 1119029 williambanzai7
williambanzai7's picture

Wed, 03/30/2011 - 17:47 | 1119046 AN0NYM0US
AN0NYM0US's picture

no way, the dude only bought $10m worth of their shares and then told the richest cat on the planet to buy the company

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