Berkshire Executive Resigns Unexpectedly (BRK.A, BRK.B, BRK-A, BRK-B, LZ)

David Sokol, a man who was a likely candidate for succeeding Warren Buffett at Berkshire Hathaway

resigned unexpectedly after buying shares in a

. Sokol bought 96,000 shares of Lubrizol

just before recommending it as a takeover target to which Buffett agreed to pay $9 billion for the company. Regulators are still evaluating the deal. Many eyebrows have raised following the announcement of Sokol's resignation because of the timing of this potential scandal, yet Sokol admitted on a CNBC interview that he tried resigning twice before in the last two years only to be talked out of it by Warren Buffett. In the interview this morning, Sokol defended the timing of his purchase of 96,000 shares of Lubrizol, stating that he and Berkshire Hathaway have been completely transparent about his ownership and potential conflicts that may exist. Sokol asserted that his role at Berkshire Hathaway is far removed from investing the company's capital and the decision-making process. Sokol indicated that neither he nor Berkshire Hathaway have been contacted by the Securities and Exchange Commission in connection with this issue. Sokol says his decision to buy Lubrizol for his personal portfolio was supported by all public information. He brought the idea to Buffett's attention shortly thereafter, but because he is not in a position to make investing decisions on Berkshire's behalf, he does not believe he has violated any legal or ethical standards. Ultimately, Sokol said he bought shares, informed Buffett of his stake and suggested it as a potential opportunity for Berkshire Hathaway. He believes it would be a disservice to Berkshire Hathaway to keep the idea to himself. While the situation seems shady to many, it would appear that the timeline of the events and the transparency that was upheld by both Sokol and Berkshire Hathaway were sufficient to sustain ethical and legal standards.