OMAHA, Nebraska (MarketWatch) -- Berkshire Hathaway (BRKA)
Wells and US Bancorp are involved in the stress tests, the results of which are scheduled to be released this week. Buffett said those three banks don"t need more equity. Wells Fargo has a dramatically different business model than the other largest banks in the U.S., he added. Marking down the value of broad types of assets like credit card loans based on different economic scenarios doesn"t work, Buffett explained.
Berkshire Hathaway Inc
BRKB 3,043.95, -21.05, -0.7%) Chairman Warren Buffett criticized the government"s stress tests of the nation"s largest banks, arguing during a Sunday press conference that the health of large lenders can"t be judged by calculating ratios and adjusting loss expectations on broad asset classes such as home equity loans and credit card loans. Berkshire owns large stakes in Wells Fargo & Co.Wells and US Bancorp are involved in the stress tests, the results of which are scheduled to be released this week. Buffett said those three banks don"t need more equity. Wells Fargo has a dramatically different business model than the other largest banks in the U.S., he added. Marking down the value of broad types of assets like credit card loans based on different economic scenarios doesn"t work, Buffett explained.
Related Links
Share Investor Blog - Stockmarket & Business commentary
Share Investor New Zealand Business News- Get more business news
Discuss this topic @ Shareinvestor.net.nz
Share Investor"s Daily Forex Updates
Recommended Amazon Reading
NEW RELEASE -Even Buffett Isn"t Perfect: What You Can-And Can"t-Learn from the World"s Greatest Investor by Vahan Janjigian
Buy new: $22.79 / Used from: $21.07
Usually ships in 24 hours
Kindle 2: Amazon"s New Wireless Reading Device (Latest Generation)
No comments:
Post a Comment