Why Buffett Caved on General Re CEO
posted on: April 14, 2008
| about stocks:
BRK.A
-
Font Size:
Well, that didn't take long. A week ago the WSJ reported that Federal prosecutors were requesting the resignation of General Re CEO Joe Brandon; today it happened, despite Brandon's having the strong support of his boss, Warren Buffett.
I don't think this is a huge blow to General Re or to Berkshire Hathaway: Tad Montross, the former president and now CEO of General Re, knows the business intimately, while Berkshire's reinsurance superstar, Ajit Jain, remains solidly in place. Still, it does seem that Buffett caved. I'd've done the same, though: especially when you're trying to set up a new municipal reinsurer, you don't want to antagonize any arm of the federal government.
Related LinksThe $300 Trillion Time Bomb
The $300 Trillion Time Bomb
Buffett Moves Into Bond Insurance
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
Felix Salmon
About this author:
Loading...
Symbols:
-
Editor's Picks
-
Most Popular
- The Nature of a Crowded Trade: This Time It's Housing
- American Express Calls Investment Banks' Bluff
- Japan: Recession-Bound As Exports Slow?
- iShares MSCI Mexico: Surprising Strength South of the Border
- A Fed Rate Hike Won't Solve the Current Crisis
- Understanding Metastorm's IPO as an Investment Opportunity
- Full list of Editor's Picks »
- Three Stocks To Be Held To Infinity and Beyond »
- As WaMu, Wachovia Ready Earnings, Comparisons to Wells, USB Are Telling »
- Wall Street Breakfast: Must-Know News »
- Steve Jobs' Health: A Red Herring »
- Financials: How - And When - We Reached the Bottom »
- Four Long-Term Winners Selling at Deep Discounts »
- Apple F3Q08 (Qtr End 6/28/08) Earnings Call Transcript »
- Earnings Preview: Washington Mutual »
- The Agriculture Boom Goes Bust »
- Crazy Dividends »
- Apple's a Buy Under $150 »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Mechel Drops 20% on Putin's Comments
- Auto Retailers' Ability to Pay Debt - What It Means
- Three Conservative Growth Industrial Picks: Adminstaff, Carlisle Companies and Illinois Tool Works
- Wait for August FFIEC Call Reports Before Taking a Long Position in Banks
- Now's the Time to Buy Something
- 3Com Corp.: Undervalued by Half
- Wachovia CEO's Insider Buying Is Another Indication of a Bottom
- Consumer Staple Stocks Are Not Always Safe Haven Investments
- The Long Case for Abbott Laboratories
- AT&T Stays Ahead of the Curve in a Dynamic Industry
- Full list of Long Ideas »
- Collateral Damage From the War on Shorts
- Is the Gold Uptrend Over?
- Response to Raymond James' Q3 Conference Call
- eBay is a Not Com - Cramer's Lightning Round (7/23/08)
- Get True Religion - Cramer's Lightning Round (7/22/08)
- Principal Financial Group Vulnerable to Commercial Real Estate Softening?
- Increases in Shorting, Only for Some
- Is a Ban on Short Financial ETFs on the Horizon?
- Is There a More Efficient Shorting Tactic?
- Short Oil as a Long Investment
- Full list of Short Ideas »
- eBay is a Not Com - Cramer's Lightning Round (7/23/08)
- Buy Costco, Get Sirius - Cramer's Stop Trading! (7/23/08)
- Soup Target; Cramer's Mad Money (7/22/08)
- Get True Religion - Cramer's Lightning Round (7/22/08)
- Copper Down Low - Cramer's Stop Trading! (7/22/08)
- Banks Hit Bottom – Cramer’s Mad Money (7/21/08)
- Ends In X - Cramer's Stop Trading! (7/21/08)
- Great American Companies – Cramer’s Lightning Round (7/21/08)
- Market Rotation Bolsters Financials - Fast Money Recap (7/18/08)
- For Everything, Wind - Stop Trading! (7/17/08)
- Full list of Cramers Picks »
Most Popular Feeds
-
ETFs
-
US Market
-
Long Ideas
-
Alt. Energy
- Full list of feeds »
Hedge Fund Jobs
Job Seekers:
- Search jobs by category
- Get job alerts by email or live feed
- Apply online
Employers
- See all recruitment options
- Get applications online or by email
This article has 1 comment:
Now that's some economical writing for ya, free-market style.
Seriously though, I think Warren "all-you-can-gene... Buffett will realise sooner or later that sitting on US$57bn cash is no better than having big stakes in the companies America's most proud of. Come this "credit-squeeze (suisse?), save-some-more, squeeze harder" decade 2008-2018.