Monday, June 15, 2009

Dick Durbin: World's Worst Inside Trader

The next big thing out of the right wing noise machine is sure to be the recent revelation that Illinois Senator Richard Durbin, a Democrat, made two stock transactions after meeting with Treasury Secretary Paulson on September 19th regarding the banking crisis. Durbin reportedly sold $116,000 in mutual fund shares and bought Berkshire Hathaway B shares, the fund run by Warren Buffett.

To be sure, it does smack of capitalizing on information and trading public issues on isider information. Any applicable laws shoudl be exercised and any ill-gotten gains should be re-paid, with appropriate fines. Let's see how Sen. Durbin likely did. Against the S&P 500, Berky B trailed and against the Fidelity Balanced Fund, a steady eddie of stocks and bonds, Buffett and Durbin got smoked.

This is further proof how inept an educated person can be even when handed top shelf information. Rumor has it Durbin's great grandfather was buying shares of buggy whip makers the day Ford Motor Company went public.

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