Did Warren Buffett Engage in Insider Trading on B of A Deal?
9:11 am, September 12th | by Amy Tennery
We suppose it was inevitable — just a few weeks after Warren Buffett’s landmark decision to invest $5 billion in Bank of America, someone’s already accusing him of engaging in insider trading. Of course, this person also admitted there’s no concrete evidence to back up those claims.
Still, even the whisper of an accusation against Omaha’s Oracle gets headlines these days, which is exactly what Dick Bove of Rochdale Securities succeeded in doing in the New York Post:
“Did he have inside information that other investors were not aware off? Did he know that there were going to be these two major announcements [of the job cuts and executive firings] at the time he made his investment? If he did know, I think it is illegal. Those are two very material pieces of information that were not [publicly] disclosed, and he may have had them disclosed [to him].”
Oh boy. Of course, just to play devil’s advocate here, was there a person anywhere who didn’t think that massive layoffs were in Bank of America’s near future? Anyway, B of A has already released a statement calling the accusations poppycock — of course, that was an easily predictable turn of events as well.