Posted on 12/31/2004 1:01:48 AM PST by kattracks
The widening insurance-industry scandal has reached legendary investor Warren Buffett, long-regarded as an icon of integrity in corporate America.Buffett's Berkshire Hathaway empire revealed yesterday that securities regulators have requested information from its General Re unit about insurance policies that might be used to smooth out earnings volatility.
The SEC request is part of an industry-wide examination of such products — called finite or loss-mitigation insurance — that have come into widespread use over the last decade.
Regulators are wondering whether such products are less insurance and more a tool to help companies mask losses.
Berkshire, based in Omaha, Neb., disclosed the SEC request in a two-paragraph statement, saying it "will fully cooperate." The SEC as a matter of policy will not comment on specific actions.
(Excerpt) Read more at nypost.com ...
You think he can afford some decent lawyers to keep him out of trouble?
integrity?? I never would have used that description
BUFFETT PROBED
...and I think we all know how painful that can be.
bump
SMTA
ping
"securities regulators have requested information from its General Re unit"
Got some 'splainin to do, general.
Insurance agents run a for-profit business (auto insurance) which we are mandated by law to support.
Sweet, sweet racket.
On the face of it, either this lost something when translated into reporter-speak (likely, since most reporters know zilch about anything beyond popular entertainment), or this won't go very far.
The whole point of insurance is risk mitigation -- i.e., making sure that losses don't occur by insuring against them. Insurance masks losses by its very nature: if your home is covered by insurance and it is damaged in a way covered by that insurance, then your potential losses are limited.
But I don't imagine that the SEC is making a frivolous investigation, so there is probably more to this story than the reporter managed to convey.
Sounds like Ms. Sanders has been watching too much Dan Rather. Buffett's a flaming purple democrat like Soros --an icon for the extreme leftist news services. Corporate America knows him for what he is, at worst a criminal and at best a joke.
LOL, yes, but will we see it live on The Today Show?
Since Buffett has announced that his multibillion dollar estate will go to Planned Parenthood, perhaps, as a result of this probe, his estate can be redirected to federal coffers instead of to slaughtering babies. If he becomes homeless in the process, that will be such a shame. NOT
Thanks!
When BRKA took over General Re, at that time Buffet commented that he and Munger were working to sell off part of General Re's business portfolio based on derivatives and how difficult it was to exit that business and how risky (for Buffet's tastes) to be in it.
This announcment is pretty thin, but I suspect it is the SEC's continued and broadened investigation into the use of derivatives (possibly sold by General Re before BRKA took over) by special purpose business entities (like Enron's).
If so, General Re, though exiting the business may have considerable 'fertile soil to be tilled' by the SEC.
What IS insurance anyway?
I'm ordered to pay auto ins. BY LAW; workers' comp. BY LAW; outrageous amount of E & O; General liablility for my small office; my mortgage company REQUIRES Homeowners Ins. ...Health insurance up the wazoo....
rough estimate in premiums--approximately $30,000.00 a year.
And I've never made a claim,
Sheesh.
Munger, Tolles and Olsen perhaps?
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