Wednesday, March 30, 2011

And cue the SEC in three . . . two . . . one. . . .

I'm not a corporate lawyer, and I don't play one on the Internet, but I have been around long enough to know when something doesn't smell quite right.

And David Sokol's sudden resignation from Berkshire Hathaway when he was in the running to become Warren Buffett's successor doesn't smell quite right. Especially after he loaded up on stock in a company he then prodded Berkshire to acquire.

There isn't a bunch to this Associated Press story this afternoon, but I'm betting there will be a lot more in short order -- especially if the feds actually start doing their job for a change:

Buffett said Wednesday that he received David Sokol's resignation letter late Monday, and noted that it came as a surprise. Buffett said Sokol, who had been serving as chairman of Berkshire's MidAmerican Energy, NetJets and Johns Manville units, indicated that he wants to spend more time on philanthropy.

Buffett said he learned earlier this month that Sokol bought nearly 100,000 shares of Lubrizol stock before recommending that Berkshire buy the chemical company. Buffett said he doesn't believe those stock purchases were illegal, and didn't ask Sokol to resign.
YEP, there's more to this. And somehow, I'll wager it all leads back to Sokol's famous arrogant streak.

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