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The SEC is said to be weighing whether to launch an insider trading investigation into former...

The SEC is said to be weighing whether to launch an insider trading investigation into former Berkshire Hathaway (BRK.A) executive David Sokol, but enforcement experts say it would be difficult to prove insider trading. “It was reckless, self-destructive behavior, but I don’t think it can be easily charged as insider trading,” law professor John Coffee says.
Comments (6)
  • Donald Ingram
    , contributor
    Comments (3481) | Send Message
     
    The SEC is a sad, sick, cruel joke. Completely under the thumb of wall street, to be used as a tool of the banksters.
    31 Mar 2011, 03:59 PM Reply Like
  • Duude
    , contributor
    Comments (3339) | Send Message
     
    Clearly, they don't even know what insider trading is. If Sokol made the buy decisions for Berkshire it would be a different story. How could the SEC not understand this? Oh, right! The SEC didn't see Madoff's 20 year ponzi scheme as an illegal ponzi scheme either.
    31 Mar 2011, 04:26 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6775) | Send Message
     
    Sokol WAS in line for "CEO," not Chief Investment Officer. So he wasn't making stock-trading decisions.

     

    My guess is that he had fallen out of grace for that job and wanted to "redeem himself" with this pick, and instead went "from the frying pan to the fire."
    31 Mar 2011, 04:59 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    What was that old saying by Buffett we heard so much about in 08?
    When the tide goes out, you see who's swimming naked? Rings a bell.
    31 Mar 2011, 04:55 PM Reply Like
  • KJP712
    , contributor
    Comments (419) | Send Message
     
    Instead of paying a fine,a promise to employ ten people in the new Hedge Fund will be sufficient.
    31 Mar 2011, 11:01 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2877) | Send Message
     
    When David Sokol fixed up Netjets the hard way, he made lots of enemies there.

     

    When Buffett mentioned Sokol as his "Mr. Fix-it", someone already he speculated that he had fallen out of favor.

     

    Buffett always showered Ajit Jain with praises in annual reports, so it's pretty clear who his personal favorite is.
    2 Apr 2011, 01:43 PM Reply Like
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