Warren Buffett Defends Goldman Sachs, Ben Bernanke
Over the weekend, investor extraordinaire Warren Buffett came to the defense of embattled investment house Goldman Sachs. Simply because of the role it played in the Wall Street meltdown and the recession, Goldman Sachs has been under fire for some time. Buffet believes the fraud allegations and investigations are unwarranted. He also came to the defense of Ben Bernanke, and that the Fed Chairman was right in the course the Federal Reserve took in its actions in making out short term loans to ailing Wall Street firms and banks.
Warren Buffett extending support of Goldman Sachs
Against the charges of fraud leveled in a Securities and Exchange Commission lawsuit, Warren Buffett came to the defense of Goldman Sachs. The purchases in question were a bundle of mortgages in collateralized debt obligations (CDOs) packages, sold as the product Abacus. Betting on the securities and losing money was Hedge fund Paulson and Co. The charge is that Goldman Sachs purchased the securities without notifying stockholders of the bet against Abacus. Warren Buffett said in Reuters: "I don't have a problem with the Abacus transaction at all," and that "I think I understand it better than most."
Buffett Defends Bernanke
Warren Buffett also leaped to the defense of Ben Bernanke. Ben Bernanke, the Chairman of the Federal Reserve, has taken a bit of a beat down in the press and from the media for seeming too willing to drive money into Wall Street. Buffett said that "there's no one in the United States that I know of whom I would rather have running the Fed than Ben Bernanke." Bernanke, who has earned himself the infamous nickname of Helicopter Ben, orchestrated the emergency infusion of cash into troubled Wall Street firms.
In Goldman, Berkshire-Hathaway own a hefty, meaty stake
Warren Buffett has a wide variety of concerns and investments through his company Berkshire-Hathaway, including a hefty stake in Goldman Sachs. In his Goldman share, Buffett owns more than $ 5 billion. He would be in a unique position to see whether a transaction could be fraudulent or imprudent. He appears to be content with the actions of Goldman Sachs and executive Lloyd Blankfein. After all, an Investment Wizard is what Buffett is, so he wouldn't back a company if he didn't have a legitimate reason to do so.
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