Billionaire Warren Buffett’s Berkshire Hathaway is being examined as part of a broad, civil investigation by the Connecticut attorney-general into conflicts of interest in the credit rating industry. The probe concerns potential antitrust violations involving the main credit rating agencies, Moody’s, S&P and Fitch Ratings; bond insurers; and other companies. Berkshire’s ownership of 19.5% 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”, said Richard Blumenthal, the Connecticut attorney-general. But, he added, the examination of the relationship was only “a slice” of the investigation.

This entry was posted by Gwen Robinson on Friday, May 2nd, 2008 at 5:42 and is filed under Capital markets, People. Tagged with berkshire hathaway. Edit this entry.