Buffett Attacks the Stress Test

From the BBC:

US investor Warren Buffett has hit out at the government’s “stress tests” of US banks, saying they do not properly assess the industry’s health.
Mr Buffett’s Berkshire Hathaway company holds stakes in three banks that underwent the tests.
He said the tests ignored differences in business models, but added it was right the government try to save banks.
The results of the stress tests were due to be published on Monday, but have been delayed until Thursday.
Referring to Berkshire Hathaway’s holdings in Wells Fargo, US Bancorp and SunTrust Banks, he said, “I think I know their future, frankly, better that somebody that comes in to take a look.
“They may be using more of a checklist-type approach.”

I was also glad to hear Buffett criticize the crazy practice of stock buy-backs.

Posted by on May 4th, 2009 at 10:59 am


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