Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us

The top local business stories in your email

Contact Us:

Josh O'Connor
Phone: 425-339-3007

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049

Jim Davis
Phone: 425-339-3097

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Buffett’s Berkshire Hathaway fined

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Kevin G. Hall
McClatchy Washington Bureau
WASHINGTON — Warren E. Buffett may soon be almost $1 million poorer.
Well sort of. The Federal Trade Commission and the Department of Justice announced an $896,000 proposed settlement Wednesday with Buffett’s investment holding company Berkshire Hathaway Inc.
The two federal agencies filed Wednesday in the U.S. District Court for the District of Columbia a proposed settlement, imposing the maximum civil penalty possible. The final judgment is subject to court approval.
The settlement with Berkshire Hathaway involves allegations that it violated pre-merger reporting laws in connection with its 2013 purchase of building products giant USG Corp.
“Although we may not seek penalties for every in inadvertent error, we will enforce the rules when the same party makes additional mistakes after promises of improved oversight,” Deborah Feinstein, director of the FTC’s Bureau of Competition, said in a statement announcing the settlement.
The FTC alleged that Berkshire Hathaway failed to notify regulators when it changed convertible notes it owned in USG into 21.4 million voting securities, pushing the value of its USG holdings over a pre-merger reporting threshold.
The company subsequently made a corrective filing with regulators and acknowledged it should have reported the conversion into voting securities. Normally that might be forgiven, but it came six months after Berkshire Hathaway made a similar corrective filing tied to its 2013 purchase of $41 million worth of voting securities in Symetra Financial Corp.
Berkshire Hathaway is a Delaware corporation with headquarters in Omaha, Nebraska. The settlement is a blemish for Buffett, whose old-fashioned wit and uncanny business sense have earned him the nickname The Oracle of Omaha.



Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

Market roundup