Sokol Violated Berkshire Ethics

[kf4amu]

Not to minimize the loss. But look at Goldman Sachs ... they should have had their doors nailed shut but were bailed out in part by Berkshire. Now look at their profits!

GS was not bailed out.

1. They accepted Berkshire money on very disadvantaged terms after Buffett did not acquiesce to the terms they wanted over many months. Once again, Warren shows that patience is a virtue.

2. The AIG bailout did not affect GS directly because GS had insured their exposure to AIG through another insurance company and would have been paid whether AIG was saved or not. The governments AIG bailout did however directly affect that 3rd party who was on the other side of the GS insurance contract, they saved 20 billion dollars since AIG did not default.

3. The TARP money was forced down GS's throats. Read what happened in the meeting with the 8-9 big bank CEO's and Paulson. He had a 1 page contract for them to sign before they left and they did not have a choice. Paulson verbally threatened them with negative future regulator decisions if they did not accept the TARP funds as a show of unity.

GS was the strongest of the banks and did not need a bailout. They raised private funds in the middle of the crisis, and had their exposure hedged in multiple ways.

 

[Helmsalee]

It sounds like they made a profit, but less than last year.

 

[gunfyter]

Report said we made $55M less than in 2010. I don't think we made $55M in the same period of 2010. So I think we either lost a few million or essentially made Zero.

They never are very straight forward with these reports.

 

[rajflyboy]

Without RTS Netjets would not be around.

He is the one that started this business and he kept it going. I would not come out and blame him for the economic downturn in 2008 and 2009 and the "Creative Accounting" that has happened ever since.

 

[Semore Butts]

He's part of the reason several of us are out on the street.

He's the reason you were even hired in the first place.

(Hiring based on projected aircraft deliveries?)

Despite his spending, I think RTS was more a victim of the economy effecting many of our owners.
(Which of course is mixed in there with the "Berny Madoff" debacle)

I have heard so many variations I just don't know what to believe. I do hope we get some leadership, and the sooner the better.

 

[gret]

It sounds like they made a profit, but less than last year.

I stand corrected.

NJ made $57 million in the 1st qtr 2010 so there must have been a profit of about $2 million this year.

 

[rajflyboy]

He's the reason you were even hired in the first place.

(Hiring based on projected aircraft deliveries?)

Despite his spending, I think RTS was more a victim of the economy effecting many of our owners.
(Which of course is mixed in there with the "Berny Madoff" debacle)

I have heard so many variations I just don't know what to believe. I do hope we get some leadership, and the sooner the better.

Yes

What he says