MONDAY UPDATE: On Sunday, Warren Buffett said Wells Fargo, U.S. Bancorp and a third Berkshire Bank holding, M&T, do not need more equity capital. “We would buy stock in any of the three banks at present prices.”
Buffett attacked government stress tests of 19 large banks, saying they failed to properly assess the industry’s health, but still said he would expand his company’s stakes in three big banks.
Berkshire Hathaway's Charles Munger goes through several books a week. Munger thinks regulators may significantly curb the amount of leverage, or borrowed money, that banks can use. That will drive down Wall Street pay, since traders won't be able to make as many big, leveraged bets. This could benefit Berkshire, with its cash hoard of $24.3 billion at the end of 2008. "There's going to be new rules in the game," he said. "For someone like us, that's going to be very interesting." More at WSJ Profile
Buffett says government is doing the right things (AP)