By Dunstan Prial
Thursday, January 21, 2010
FOXBusiness
In an exclusive interview with Fox Business Network’s Liz Claman, the billionaire chairman of Berkshire Hathaway (BRK.A) said he’d need to know more about the significant banking reforms proposed earlier in the day by the Obama administration before commenting on their potential impact. The reforms propose restrictions on the size of big U.S. banks and the amount of risk they can take on.
The so-called Oracle of Omaha said regulation is an important part of any effective financial system. In addition, Buffett said there likely will always be financial institutions “too big to fail.” However, he said it’s inherently difficult for regulators to police risk.
What needs to change is the incentives for bank leaders, Buffett said. CEOs of banks that need to go to the government for bailouts should be “destroyed financially,” he said.
Buffett, whose firm invested $5 billion in Goldman Sachs (GS: 161.4161, -6.4639, -3.85%) last year, said the Obama administration’s proposal would not prompt him to sell any of those shares.
“I’m not tempted at all” to sell Goldman stock, he said. “I would not be bearish on Goldman Sachs at all.”
Buffett added that he continues to support the Obama administration, including Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.
Share Investor Blog – Stockmarket & Business commentary
Share Investor New Zealand Business News– Get more business news
Discuss this topic @ Share Investor Forum – Register free
Share Investor’s Daily Forex Updates
Recommended Amazon Reading
 |
Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor by Janet Lowe Buy new: $13.57 / Used from: $3.91 Usually ships in 24 hours |
 |
The Winning Investment Habits of Warren Buffett & George Soros by Mark Tier Buy new: $10.85 / Used from: $6.72 Usually ships in 24 hours |
