Professor Elam

Thursday August 25, 2011

There are laws against insider trading which are supposedly enforced by the SEC via the Justice Dept. Insider trading consists of using information only known to corporate insiders, unknown to the public to profit from forthcoming events. 

Now consider this series of events.

Buffet sponsors economic forum for President.

An economic forum right, not a fund raiser?

Now read the deal Warren got this morning courtesy of Zero Hedge. Warren did a repeat of the Goldman Sachs deal, he got first dibs on cumulative preferred shares plus  warrants on a hefty 700 million shares off B of A at $7.14. The stock of course jumped on the announcement that Buffet had bought into Bankd of America. The stock is up over a point which means Warren could cash out now for a cool billion in one morning. 

As Zero Hedge points out, Bank of America did need the capital and had no way to raise it. 

Sure under other administrations similar deals happen for favored friends of the administration. But gee, anyone who had been fined for insider trading can see that he just

did not have friend in the right places.