U.S. Banks Have Ample Liquidity: Warren Buffett
Published Sunday, 06 May 2012 14:38 | Written by Amwal Al Ghad
“I would put European banks and American banks in two very different categories,” Buffett, Berkshire’s chairman and chief executive officer, said today at the firm’s annual meeting in Omaha, Nebraska. “The American banking system is in fine shape. The European system was gasping for air a few months back” before getting assistance from the European Central Ban
Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. posted record profits last year and their CEOs are contesting efforts by U.S. policy makers to strengthen banking regulations. European banks have struggled amid the continent’s sovereign debt crisis and turned to the ECB, starting in December, for extraordinary three-year loans at interest rates of 1 percent.
“I’d like to have a lot of money for three years at 1 percent, but I’m not in trouble,” said Buffett, 81. U.S. banks have “liquidity coming out their ears.”
Berkshire, which Buffett has led for 42 years, is the biggest shareholder of San Francisco-based Wells Fargo, with a more than $12 billion stake. Buffett injected $5 billion into Bank of America Corp. (BAC) last year in exchange for preferred stock and warrants. Berkshire’s shareholding of U.S. Bancorp (USB) was valued at $2.2 billion as of yesterday, Bloomberg reported.
The Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
Most Popular »
- Russian Fund Seeks Energy, Infrastructure Investments in Egypt at Beginning of 2014
- OCI N.V. Non-Executive BOD to nominate Robert Jan van de Kraats Board Member
- CBE: Egypt’s Forex Reserves Dip to $17.8 bln in Nov
- TE Mulls Extending Submarine Cable through River Nile to Serve Africa
- Tourism in Egypt and Tunisia Shows Signs of Recovery