Frontrunning crimes aren’t prosecuted. Prosecution is for the little people!
David L. Sokol (born 1956, Omaha, NE) was a Chairman, President and CEO of NetJets along with Chairman of MidAmerican Energy Holdings Company, of which Berkshire Hathaway holds a 100% and 89.8% stake respectively. He resigned March 28, 2011.
Resignation and Lubrizol related share activityMr. Sokol purchased 96,060 shares of Lubrizol at a limit price of $104 per share between January 5 and 7, 2011. He presented the idea of Berkshire acquiring Lubrizol to Buffett on January 14 or 15, 2011, and again after a January 25 meeting with Lubrizol’s CEO. Berkshire Hathaway’s board voted to acquire Lubrizol at $135 per share on March 13, 2011.
On March 28, 2011, he, Sokol, tendered his resignation from Berkshire Hathaway. In his press release detailing the resignation, Mr. Buffett detailed trading activity surrounding the Lubrizol acquisition, emphasizing that he did not believe anything unlawful transpired.
Sokol’s defense to his “frontrunning” on CNBC? Everyone at Berkshire Hathaway does it! From ZeroHedge:
Forget David Sokol, Is The SEC About To Tell Charlie Munger To “Suck It In”?
Submitted by Tyler Durden on 04/03/2011 22:23 -0400
On March 31st, David Sokol appeared on CNBC Squawk Box (to the most distraught Becky Quick we have ever seen) in an attempt to explain why his purchase of of Lubrizol Corp, prior to Berkshire Hathaway’s purchase of the Company, was perfectly acceptable. In attempting to provide evidence of this“perfectly acceptable” practice David Sokol said a curious thing (17 minutes 15 seconds in):
I don’t believe I did anything wrong. Charlie Munger owned 3% of BYD before he asked me to go look at it.
Because we all know if everyone is doing it, then it isn’t illegal or unethical. Especially if everyone is a member of the Berkshire inner circle.
on Sun, 04/03/2011 – 23:10
NOTHING will happen to the rich members on Team Obama.
Here’s a more recent story from ZeroHedge:
Munger “Recuses Himself” As Frontrunning Focus Shifts To His BYD Purchase
Submitted by Tyler Durden on 04/05/2011 18:01 -0400
A few days ago, we disclosed that based on David Sokol’s testimony to CNBC, Buffett’s right hand man, Charlie Munger, may be just as guilty of a comparable attempt at frontrunning a Berkshire purchase through his previously undisclosed holdings of a 3% stake in BYD. And despite the Octogenarian’s wishes that this story remain dead and buried, Bloomberg has decided to once again bring it up to popular attention.
But how about we get the SEC’s opinion on the matter.
Ah, yes, the SEC will take action. The same SEC that failed to catch Bernie Madoff after a million tips. The same SEC investigators who watch porn at work.
on Tue, 04/05/2011 – 18:12
This is the cherry on top of the BuffettFraud Sundae.
If there isn’t a vigorous investigation of Buffett & Munger now, there should be pitchforks.
There should be pitchforks. It starts at the top, with Barack Obama. Why do you think he’s pulling in over $30,000 a seat? Who else can afford that but the banksters?
on Tue, 04/05/2011 – 18:12
It does not matter what Munger did. He & Berkshire & Buffett are in Owebama’s club, so will never get charged with anything.
Charlie Munger is the great guy who once told students that bailing out the financial criminals was a necessity, but the normal people on Main Street should just suck it up. From other comments:
on Tue, 04/05/2011 – 18:35
Charles Munger, the billionaire vice chairman of Berkshire Hathaway Inc., defended the U.S. financial-company rescues of 2008 and told students that people in economic distress should “suck it in and cope.”
“You should thank God” for bank bailouts, Munger said in a discussion at the University of Michigan on Sept. 14, according to a video posted on the Internet. “Now, if you talk about bailouts for everybody else, there comes a place where if you just start bailing out all the individuals instead of telling them to adapt, the culture dies.”
– Charles Munger, BYD Frontrunner, Douchebag-In-Chief, Berkshire Hathaway
on Tue, 04/05/2011 – 20:53
Munger says we should suck it up. Bailouts are a necessity and the rich just have to make money any way they can.
A good summary is at Wall Street Oasis:
Trouble in Warrentown
by Jorgé O on 4/6/11 at 9:12pm
He’s been called a hypocrite, a cheat, a liar, and God knows what else lately.
I didn’t even bother checking on what happened after Charlie’s admission.
And then there’s Michael Steinhardt.
That magnificent bastard had to go on and lash some truthiness on CNBC, causing another PR shitstorm and a reawakening of the anti-Buffett insurgence.
Will the SEC investigate? Will the scandals reach Warren Buffett?
Will Barack Obama refuse money from Buffett and his friends?