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Warren Buffett, Obama, The Banks, And You
Warren Buffett, the CEO of Berkshire Hathaway on Fox Business News today said that he does not agree with Obama’s New Proposed Regulations on Banks placing Government Regulations on risk. He said that he felt it was the individual’s CEO’s and even their wives responsibility to manage risk.
He said that if there are failures, that the CEO’s should have to pay for failing to manage those risks. He also went on to say that by implementing such regulations, there there are often unintended consequences.
And those consequences may already be happening as Banking stocks have tanked today and JP. Morgan and others may be getting rid of their banking divisions.
The bottom line is that the consequences of even the proposed regulations is that it will make it even hard for small businesses to get loans and it has cause the loss of billions of dollars of value for shareholders of those banks just today.
Buffett declined to address comments concerning the socialistic aspects of the proposed Obama regulations.
I will post the complete video as soon as it becomes available.
The reforms basically propose restrictions on the size of big U.S. banks and the amount of risk they can take on.