Always about money melissa straight to the back room story tonight. The whispers are focused on the biggest wall street titan of them all, Warren Buffett. The oracle of omaha himself. He is known for not micromanaging companies he buys but insiders are warning that his 29yearold protege, tracy britt is stirring the pot at benjamin more owned by Berkshire Hathaway of the it is all the word on wall street. Here with the juicy details, the wall street journal ahead of the tape columnist, Spencer Jacob and jonas fax ferris. Welcome to both of you. This is unusual situation for buffett. He is very hands off when he buys this company. Now he has the young woman who has gone inside the company and is representing him, abruptly you see the ceo quit. Pretty much after very short tenure. There is lot of buzz about it. What is going on . We dont really know what is going on because it is not a very transparent company. Berkshire hathaway is not transparent in a sense what is going on in the back room. Obviously was displeased with something. This guy had not been ceo for very long. The former ceo was gone as well. His protege is only 20 nine years old. Chairman of Benjamin Moore and Similar Company with combined over 4 billion of sales. Clearly she didnt like the direction the company is going. There is nothing to say there is anything in terms of a personality clash going on but it is possible because you put a 29yearold woman in charge after oldline, maledominated company and conflicts could have arisen. Melissa if you look the way it has been described, jonas, this is a woman who graduated from Harvard Business school in 2009. Inciders say she quote, swooped in last summer. After buffett had fired the former ceo. They described her as hyper organized, very nononsense. Everyone was initially impressed or at least hopeful about the situation. At the very least, insiders are, you know, leaking to the press negative things about this woman and her relationship inside the company. What do you think . It definitely smell pass little suspicious except i dont think buffett would do Something Like this. This is pretty young woman and most companies have owned by young men. They dont like people telling them what to do. They dont like it when Hedge Fund Managers do it when 40 or 50. Because she is young and pretty. This boss would like only in this Company Running things because she has the office next to buffett and he is a on old man. I dont think that is how buffett operates. His track record shows he doesnt operate like that. He wouldnt putter in front of four companies to throw her a favor. I think this old paint Company Needs to be shaken up with young people but it is not a tech company. Iting unusual to have young people calling shots. Melissa still, this was a ceo that he had put in place after he got rid of the original ceo when he took over the company. This was bob merit. Turned around outback steakhouse. Not tracy britt. Were talking about bob merritt. Left suddenly. 61 years old. Couldnt be confirmed why he left. He was the pick to go in and turn it around after the work he had done at outback. He is abruptly out. They say the next guy will be here any minute. Sound like it is not the normal roughing of feathers that goes on with Warren Buffett ruffling. Its a myth he handsoff. Melissa it a myth . If look at operating history that not always the case. He is always ready to get rid of people. If he buy as Company Controlled by a family or somebody there aa long time they feel comfortable silling to him because he likes to keep people in place and della gait. He has been quick to cut people who do things that displease him. Spending large amounts of money he wasnt happy spending or taking things in a Strategic Direction or being unethical. So he is actually, hes not called the best manager in america for nothing. You do have to be aware of what is going on in this case he delegated the responsibility to someone who half to be half of the ceos age, less than half of is age. It may have been a source of conflict but may be something specifically for the company. The company is not doing very well. Melissa absolutely. I want to pick up on that point, jonas. There is situation he came in and saw value that wasnt being exploited at time. This is company, dealers were saying that Benjamin Moore was using intimidation tactics. They were yanking inventory, financing arbitrarily. Demanding payment force advertising programs that never materialized. These were vendors unhappy with Benjamin Moore at the time. This company was in trouble and in trouble and under duress. He saw an Investment Opportunity and wouldnt be surprising he is making changes. They never discounted aura of paint i like but that is side story. Buffett is not always about alcoa and cocacola and buying longterm things. He made 10 billion during the short term crisis deals. If there is Investment Opportunity he will look things to make money quickly, not over 20 or 30 years. This kind of a management shift is what youre trying to do is turn around a Company Going nowhere or slowly disappearing. It is kind of radical. Doesnt sound like normal buffett investment. Were familiar with the cocacola stuff. There is history of other dealings. Melissa do you think he is comfortable with all the gossip swirling around this and this situation and this young woman that he has brought in . She is 29 years old and she is coming in as, you know, his right hand gal to turn around this company. It is 130yearold company. These are very senior ceos. She is coming in and ruffling feathers. Were speculating about it. It is picking up and the post gossiping about it. It reach ad gossiping level. He is not a gossip type of guy. Go ahead. How long have they criticized Berkshire Hathaway . Criticism has been 15 years all old people running it and they will die some day and what will we do as investors. Melissa good point the 29yearold at least we dont have to worry investors at Berkshire Hathaway if the manager is good. They have a long tenure. Melissa if she wasnt young and long blond hair with woe talk about this story . We wouldnt but you dont get into Harvard Business school with long blond hair necessarily. Melissa go ahead. If youre 83 years old almost everybody at the company will be half your age or less and half are female. To his credit he brought someone in young and female. I think it is not fair to cast aspersions. You could hire someone less goodlooking. You hired, im going to give him the benefit of the doubt. He is a businessman first and foremost and he hired someone who is competent and happens to be a lot younger than him and opposite sex. I dont see anything, it is silly to assume anything else. Melissa okay. Gentlemen, thank you so much. Next on money, mark cuban dealing with some tough plays in court but looks from it he could be on track to lose this game. We have all the latest details from those in the know. One week and counting, not the shutdown, the health care law. Have you signed up yet . Seems like no one else did either. We have a Progress Report you have to hear. More money coming up. Howdy partner. Youre not linda. Im filling in for officer owens. She used double miles from her capital one venture card to take an early vacation. Buckle up. Lets go do cop stuff. [ siren chirps ] license and venture card, maam. Was i going too fast . Oh, youd be going twice as fast if you had double miles. [ male announcer ] get away fast with unlimited double miles from the capital one nture card. Freeze dont touch the face can i drive . Absolutely not. Whats in your wallet . Absolutely not. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Melissa from one billionaire to another, a tough day in court for mark cuban. A federal judge turning down cubans request to dismiss the governments Insider Trading case against him. That is not all. During his second day of rough questioning cuban contradicted himself about a key phone conversation that is absolutely crucial to the secs case against him. Things not looking so good for cuban. With me former federal prosecutor fred tecce and the wall street journals James Freeman. Gentlemen, thanks for joining me. Thanks for having me. Melissa fred, i want to start with you. It all hinges on the conversation with the ceo of the company he was investing in allegedly told him that they were about to make a secondary offering and that would totally dilute his stake and he went on and sold his shares. That is what the government i saying happened. Right. Melissa the contradiction came in because cuban said, first, the phone conversation happened nine years ago. He doesnt remember anything about it. He doesnt remember hearing that this ceo tell him, you know, this is confidential information that im going to tell you. You cant trade on it but by the way were about to dilute the hell out of you tomorrow. He doesnt remember that. The ceo said, cuban said, now, im screwed. I cant sell. Right. Melissa cuban said no way i said that i absolutely didnt say that. If he doesnt remember the conversation how does know he didnt say that. Is he in trouble . Well, he is in big trouble. For a couple reasons, when you say i dont remember, you cant turn around and say i didnt say that the argument to the jury in Closing Argument or the whatever the guy is name is, yeah, whatever it is, told you what happened during the conversation and mr. Cuban told you that he didnt remember. So it is not a he said she said, and it is he said and he said i dont remember. The problem with cuban he has twofold. I will make it quick. The second one the whole thing about the sec is beating up on me. That is the defense. The problem when you try cases to a jury, this thing about beating up on me, if he had a good solid Legal Defense and factual defense that would be a good thing to help him. Without that and testimony he doesnt remember, looks like im getting beat up on and looks like he is deflecting attention and avoid responsibility. Melissa James Freeman i didnt know you used to work at sec. Im absolutely terrified with you because i dont know what connections you have. Setting all this aside, its a phone conversation that happened nine years ago. There is no recording of it. Their whole case hinges on the fact he was told, you know, were about to dilute you tomorrow and he sold. There is no tape recording. So i think in spite of what fred just said it is he said, he said. No one can prove what he said on the call. Its a he said, he said. Keep in mind mr. Cuban also acknowledged that he did not answer accurately to the sec originally when he said it was actually his broker who controlled that account. Melissa thats a good point. Now he acknowledged that actually he controlled it. So it is a lot of money. A few hundred million bucks even for a guy like him thats a big deal. Melissa fred, he saved himself the loss of 750,000 might seem like chump change seems all the trouble. Wouldnt cover caviar on his yacht of the i dont get it. Melissa i will tell you, theyre saying the fine could be somewhere 2 million. Correct. 3 million. Melissa he is worth 2. 5 billion. He says this is about principle. That he is being persecuted. He didnt do anything wrong. That is why he is fighting it. If he were your client what would you tell him right now. I tell him what i tell all my clients. Principle will run you triple. Melissa thats a good line. The bottom line is this. He is trying to stand up and i think in the back of his mind, i think he is relying upon his celebrity status. Position as owner of the mavericks. Position on reality shows. What anything taught me done the stuff, the jury will put that aside and base it upon what they have seen. His testimony doesnt really help him. The governments case is tough by any stretch of the imagination. It turns on a phone call. He is not an insider other than result of the phone call. Its a uphill battle. This is why these cases go to the trial. If it was a slam dunk for government or for him he would have settled a longtime ago. That point he is not a insider and not a fiduciary. Correct. It is not clear if the jury decides that he is not been entirely truthful that he is going to be found liable. I like that he is doing a public service, making the sec go to trial. That will help us determine what exactly Insider Trading is. It has been very vague in the law. Melissa that is a good point. It is. It is. Melissa he is not an insider. How could he be guilty of Insider Trading. He accept ad phone call from the ceo of the company. So what . You can hold people like that outsiders if theyre law calls a tippee. If they got information they shouldnt have had. Im not sure you couldnt argue it was information he wasnt entitled to and given concerns that he would blast him in his blog. So again, you know, he may have violate ad confidentiality agreement. Even if the sec wins, if im his lawyers im arguing to the 11th Circuit Court of appeal, maybe he violate ad confidentiality agreement but doesnt make him insider trader from the 34 act. Melissa is may not help him that he is celebrity. He is incredibly wealthy. Owner of the dallas mavericks. Has a popular show of shark tank, where he stakes people in new businesses. Could it hurt him . Does that make him less likeable to the jury that he is loaded swagger guy were watching swagger across the screen right now . It can depending how he acts in front of the jury. Melissa what do you think . Does that help him or hurt him . I think, probably hurt him at the margin would be my guess but on the other hand, another thing he can bring up is, where are the victims . That isals issue win cider trading. I dont know if this is the time to editorialize how it could give us more accurate stock prices. Its a problem in these trials where they will have a tough time saying he harmed people and here is th that was harmed. Melissa that is interesting. Thats a great point. Thanks to both of you. We will keep an eye on that. Thank you. Melissa a lot of important law. Coming up on money, after all the tile and money spent to sell us obamacare how is it going a week in lets say our economy could be probably better spent. Plus sean eagan of eagan jones Rating Company will give us the real story on why no one is downgrading us on the looming default. The reason might surprise you. Do you ever have too much money . Well be right back. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Customer erin swenson ordebut they didnt fit. Line customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Were going to do a challenge. Im going to try and download every movie ever made [laughter] and you are going to try to sign up for obamacare and well see which happens first. Okay. Melissa boy, he is only guy that could get away with that, right . On to obamacare and almost laughable numbers were seeing for how many people actually signed up. I say almost laughable when you follow the money and think about huge of yours has gone into fighting for and set being up the system it is actually not funny. Even if you dont like the new health care law, you will still be staggered by the stats we have. Ben is an independent insurance broker. He is here to break down the numbers. Now, ben, i wanted to have you on the show because you dont have a dog in this fight. You are not political. Your business is about helping Small Businesses sign up for the best Health Care Plan they have. So you have been in the system comparing what is out there and what have you found about obamacare so far . Yeah. Thank you again for having me back. I am out there in the middle of this and we also work with larger corporations and individuals. Melissa okay. And this is probably one of the more complicated times in American Business for individuals out there purchasing health care. You know, we saw the numbers last week, that over eight Million People tried to sign up. We really dont know how many of those folks had success going into the system. It was like t