Warren Buffett - Insider Trading

[BeFranklin]

This two articles mention a spike accouring before Warren Buffets Goldman Sachs buy, and how Warren Buffet now stands to make a mint by talking up the bailout.
Last week, Warren Buffet made 2.5 billion dollars in one night of trades after the government announced its bailout plan -
and he sat in on some of the talks with AIG and others. That last article I'm looking around for, since I didn't save it -
so if anyone could post it, I'd appreciate it

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http://www.fool.com/investing/dividends-income/2008/09/26/why-would-warren-buffett-stoop-so-low.aspx


Why Would Warren Buffett Stoop So Low?
By Chuck Saletta
September 26, 2008 Comment (7) Recommend (4)
Shortly after Warren Buffett invested billions in Goldman Sachs (NYSE: GS), he appeared on CNBC in support of the monstrous bailout package winding its way through Congress. Considering how astute and revered an investor as Buffett is, such actions raise tremendous moral and ethical red flags.

Buffett's timing is important. He made the investment first, and then he talked up the bailout. As a significant new investor in Goldman, Buffett now stands to personally benefit from that bailout. Had he advocated the bailout before making the investment, that'd be one thing. By reserving public comment until after he stood to benefit from it, Buffett looks less like an advocate of reason and more like someone out to make a quick buck.


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http://www.cnbc.com//id/26875747


GOLDMAN JUMPS ON BUFFETT INVESTMENT

Shares of Goldman Sachs [GS 137.99 2.49 (+1.84%) ] enjoyed a modest bump after investors learned that Warren Buffett had invested $5 billion in the firm. Many take the move to signal a vote of confidence in the bailout plan before Congress.

When Goldman got Warren Buffett to invest, they didn’t get just anyone. They got a name that everyone loves, explains Pete Najarian. That has a lot of value.

In an interesting twist, an unusual surge in Goldman Sachs' share price in the last 10 minutes of trading on Tuesday raised eyebrows on Wall Street, as it came two hours before news of Warren Buffett's big investment in the bank.
Goldman Sachs shares rose more than $5 heading into the close of trading even as the rest of the market tumbled, leaving traders suspicious that inside information was used to make a profit.

"Obviously someone knew the Buffett news that was coming out. I noticed it yesterday and I was telling my colleagues something is going on with Goldman," said Dave Rovelli, managing director of US Equity Trading at Canaccord Adams in New York.

"That was insider trading and market manipulation," exclaims an irritated Jeff Macke. "Somebody had some information that you didn’t and they took advantage of you. I don’t understand why more people aren’t outraged!"

What do you think? We want to know!


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[Bruno]

thicker and thicker! damn, this is getting good! And I mean that in the sense that Americans shoud be OUTRAGED and need more of a catalyst for their anger to take deeper root. Nothing like greedy bankers and investors to piss people off.

 

[forsmant]

Insider trading is not a real crime. There was no fraud or violence, people just knew before hand. How dare they!!!!

 

[BeFranklin]

Insider trading is not a real crime. There was no fraud or violence, people just knew before hand. How dare they!!!!

The insider trading mentioned in these articles is from sitting in on secret government meetings, and isn't about free markets but political corruption and the force of law.

The people are getting paid through use of force in government, knowledge about that and changing laws to their advantage before it happens, and fraud. There is no easier inside trade to make then to change a law to favor you before it happens. This is direct political corruption.

And insider trading is a crime, and the laws should be equally applied to everyone.

 

[freelance]

BE, thanks for digging all this up. You can't make this stuff up. They have become so corrupt that they just flaunt it now. RICO anyone?

 

[BeFranklin]

BE, thanks for digging all this up. You can't make this stuff up. They have become so corrupt that they just flaunt it now. RICO anyone?

Thanks. If anyone can find the articles on Warren Buffett from last week where he may have made 2.5 billion, I'd appreciate it. Going to go to bed, then write some letters tomorrow decrying all the looting that is going on. That is why I posted a couple of threads like this tonight - I'm going to start writing letters tomorrow. I encourage everyone to do so too. This bailout isn't about saving the economy. This bailout is about looting.

 

[Knighted]

I don't think Buffett himself would bother with insider trading. I'm quite certain he would support anything (as in bailouts) if it would earn him a profit in the end, though.

I hadn't heard the 2.5 billion number thrown around regarding Buffett. I do know that another huge lobbier for the bailouts, Bill Gross, made $1.7 billion in a day due, I believe it was, to the Fannie/Freddie bailout.

 

[forsmant]

Insider trading is a crime just as smoking pot is a crime. Neither hurt anyone else except maybe their fellings. Attempting to change the laws in your favor is not a crime either. While this particular case may involve fraud, it is the fraud that should be illegal not insider trading.


I am pretty sure he did advocate the bail out before hand as he is a government intervention is good kind of guy. BUffet has always been the guy trying to make the quick buck and he does it however possible. He is the eppitome of oprotunistic personality.

 

[BeFranklin]

Insider trading is a crime just as smoking pot is a crime. Neither hurt anyone else except maybe their fellings. Attempting to change the laws in your favor is not a crime either. While this particular case may involve fraud, it is the fraud that should be illegal not insider trading.

Changing the law in your favor is definately a crime, and goes against the ideas of limited government, the constituion, countless federal and state laws, and even the declaration of independence, that all men are created equal, and aren't endowed with special rights under the law.

 

[forsmant]

Changing the law in your favor is definately a crime, and goes against the ideas of limited government, the constituion, countless federal and state laws, and even the declaration of independence, that all men are created equal, and aren't endowed with special rights under the law.

Changing laws in your favor is what we are all trying to do. It is not a crime. Some peoples laws will help everyone and others are blatantly biased. It is our job to fight this kind of lawmaking. It is not illegal, although maybe it should be.

 

[Malakai]

Insider trading is not a real crime. There was no fraud or violence, people just knew before hand. How dare they!!!!

It's cheating/abusing the system. Don't know if I completely agree that it isn't fraud either, need more info. One of government's few roles in the market should be investigating and prosecuting things like insider trading and Enron type stuff.

Government people do this with all kinds of stuff, buy stock in a defense company when you know your about to award them a huge contract , ect.

Insider trading is a crime just as smoking pot is a crime. Neither hurt anyone else except maybe their fellings. Attempting to change the laws in your favor is not a crime either. While this particular case may involve fraud, it is the fraud that should be illegal not insider trading.

Ok I definitely disagree with you here. Will post detailed argument after dinner, I just got home from work =)

 

[BeFranklin]

Changing laws in your favor is what we are all trying to do.

I am not trying to change any law to my "favor". I just want equally good laws for everyone.

 

[cheapseats]

... Warren Buffet now stands to make a mint by talking up the bailout.
Last week, Warren Buffet made 2.5 billion dollars in one night of trades after the government announced its bailout plan -

A market like this constitutes a buying opportunity for Major Players. Bunch of 'em will make a killing once they start releasing some money. It's not like they don't have it.

The money supply has not been burned in protest of mindless consumerism.

The Major Players are waiting.

So should Congress.

The People should make them.

ESPECIALLY now that you can see the Spending Gleam in Democratic eyes. Left to their own devices, I believe the Democrats would actually EXPAND the Government Grab. Alas, the price of Do Goodery as gone up with everything else.

 

[Crash! Are You Ready?!]

Hr 2755

With all the Current EconoBabble from both “Conservative” McCain & Obama, and all the BUSHIT from “W”, it is refreshing to see that a REAL PATRIOT has the ONLY solution:

To ABOLISH THE SOURCE OF ALL THE DEBT - the privately owned “Federal” Reserve Bank!

I interviewed Congressman Ron Paul this morning about HR 2755 - The Federal Reserve Board Abolition Act - which will be rebroadcast this weekend.

To listen to the fastest growing program on the Genesis Communications Network, go to
http://www.hearitonline.com and click on the link to the Crash!

George W. Berry

 

[forsmant]

http://mises.org/econsense/ch50.asp

 

[Crash! Are You Ready?!]

Hr 2755

With all the Current EconoBabble from both “Conservative” McCain & Obama, and all the BUSHIT from “W”, it is refreshing to see that a REAL PATRIOT has the ONLY solution:

To ABOLISH THE SOURCE OF ALL THE DEBT - the privately owned “Federal” Reserve Bank!

I interviewed Congressman Ron Paul this morning about HR 2755 - The Federal Reserve Board Abolition Act - which will be rebroadcast this weekend.

To listen to the fastest growing program on the Genesis Communications Network, go to
http://www.hearitonline.com and click on the link to the Crash!

George W. Berry

 

[BeFranklin]

http://mises.org/econsense/ch50.asp

You are never going to convince me that insider trading in the form of sitting in on governmnet meetings held in secret and that are suppose to be held in the open is what is being talked about here. This is a direct subversion of free government.

More to the point, taking everyones money and giving it to these companies in the form of a bailout is also outright subversion.

 

[LibertyEagle]

The insider trading mentioned in these articles is from sitting in on secret government meetings, and isn't about free markets but political corruption and the force of law.

The people are getting paid through use of force in government, knowledge about that and changing laws to their advantage before it happens, and fraud. There is no easier inside trade to make then to change a law to favor you before it happens. This is direct political corruption.

+1

 

[cjhowe]

Insider trading is not a real crime. There was no fraud or violence, people just knew before hand. How dare they!!!!

This may not be an instance of insider trading, but insider trading is a fraud. The corporate insider, simply by accepting employment, has made a contract with the shareholders to put the shareholders' interests ahead of their own, in matters related to the corporation. When the insider buys or sells based upon company owned information, he is violating his contract with the shareholders. Including the shareholder that he is transferring the asset with.

 

[forsmant]

This may not be an instance of insider trading, but insider trading is a fraud. The corporate insider, simply by accepting employment, has made a contract with the shareholders to put the shareholders' interests ahead of their own, in matters related to the corporation. When the insider buys or sells based upon company owned information, he is violating his contract with the shareholders. Including the shareholder that he is transferring the asset with.

Your employee would also be a shareholder. It would only be fraud if he lied about his reasons for selling or buying to mislead other shareholders. None of which consitutes physical harm to anyone.