Friday, May 2, 2008
I hear the sound of worms coming out of the woodwork?
Billionaire Warren Buffett's Berkshire Hathaway is being examined as part of a broad investigation into conflicts of interest in the credit rating industry that is being conducted by the Connecticut attorney-general. page 2 of the article http://us.ft.com/ftgateway/superpage.ft?news_id=fto050120081837511956&page=2 Mr Blumenthal said Berkshire's ownership of 19.5 per cent of Moody's, which last week gave a top-notch rating to Berkshire's newly formed bond insurance business, "certainly creates an appearance of a conflict of interest". But he said the examination of the relationship was only "a slice" of the investigation: "It may be one symptom of a flawed system rife with apparent conflicts of interest and problematic relationships."