Warren Buffett says big banks will split
Warren Buffett told Fox Business Network Thursday that big investment banks such as Goldman Sachs Group (GS) are likely to split off government-chartered banking operations if regulations proposed by President Barack Obama take effect. “It would be logical that they would do so,” said Buffett, chairman of Berkshire Hathaway Inc. (BRKA, BRKB). Buffett said he never had any problems with the old Glass-Steagall rules which largely kept commerical banks out of investment operations
.
Buffett also told Fox Business that he doesn’t plan to sell off his holdings in Goldman Sachs, and that he foresees holding the shares at least five years.
Buffett said chief executives of big banks should be held accountable for excessive risk and for losses, instead of taxpayers and shareholders bearing all the burden.
He said Berkshire Hathaway, whose class B shares just underwent a 50-to-one split, will continue using stock and cash to buy companies.
blog comments powered by Disqus