This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Einhorn and Buffett Ready to Call Bets in Moody's Card Game: Street Whispers

At the conference on Tuesday, Einhorn conceded in the near-term, his short position may continue to suffer a rebound in Moody's earnings. Still, he pointed to the Cheyne SIV trial to vindicate what's been a slow-burning short bet. Were fraud to be proven, other investors in securities rated by Moody's during 2007 and 2008 may chose to sue rating agencies before their rights expire, in a prospective explosion of legal liability stemming from the crisis, said Einhorn.

Both Einhorn and Buffett have sparred publicly on Moody's. In a June 2010 testimony to legislators, Buffett defended rating agencies, noting that Moody's shouldn't bare all of the blame for the crisis. "Look at me. I was wrong on it too," said Buffett about of the housing market, which he said greatest bubble he's ever seen. Buffett was excoriated in the press for his testimony, and in a Bloomberg TV interview, Einhorn subsequently pressed his short, questioning both the credibility of Buffett and the agencies.

Investors should watch for a February trial on fraud charges leveled against Moody's to settle the score between Buffett and Einhorn.

For more on Einhorn's presentation at the Congress, see why he's kicking the tires on GM.

See why Bill Ackman may have forgotten about his J.C. Penney and Procter & Gamble overhaul investments and why Jana Partners' Agrium breakup pitch is a shale oil and gas bet for other big investing ideas presented at the Value Investing Congress.

-- Written by Antoine Gara in New York

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BRK.A $215,800.00 0.00%
BRK.B $143.36 0.00%
CMG $634.00 0.00%
MCO $107.22 0.00%
AAPL $128.95 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs