If he was involved in insider trading then he deserves what's coming to him, and besides he has enough $$ already anyway. But it sure would give us a huge boost if he was a buyer :)
Buffett got out of FRE in 1999 or 2000. I doubt he spoke with Paulson back then(Paulson was probably at GS and not a friend of his). He is too involved with the gov't to buy these(many of his entities are insurance/re-insurance)