Warren Buffett vigorously defends Goldman Sachs. Image from Wikimedia Commons.
Over the weekend, investor extraordinaire Warren Buffett came to the defense of embattled investment house Goldman Sachs. Goldman has been under fire for some time, for the role it played in the Wall Street meltdown and the recession. Buffet asserted that 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 offers support of Goldman Sachs
Warren Buffett defended Goldman Sachs against the charges of fraud leveled in a Securities and Exchange Commission lawsuit. The purchases in question were a bundle of mortgages in collateralized debt obligations (CDOs) packages, sold as the product Abacus. Hedge fund Paulson and Co. bet on the securities losing money. 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. Bernanke, the Chairman of the Federal Reserve, has taken a bit of a beating in the press for seeming to be too willing to pump cash 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, sometimes called “Helicopter Ben” orchestrated the emergency infusion of cash into troubled Wall Street firms.
Berkshire-Hathaway owns a hefty stake in Goldman
Warren Buffett, through his company Berkshire-Hathaway, has a wide variety of concerns and investments, and a hefty one is a stake in Goldman Sachs. Buffett owns more than $5 billion in Goldman shares. He would be in a unique position to see whether a transaction could be fraudulent or imprudent. He seems to be satisfied with the actions of Goldman Sachs and executive Lloyd Blankfein. Buffett, after all, is an Investment Wizard, and wouldn’t back a company if he didn’t have a legitimate reason to do so.
Comment 1. Very convenient arrangement Burnanke, Paulson, Guitner, and Obama through their control of Goldman Sach for Mr. Buffett, Al Gore, Maurice Strong, George Soros. This is a criminal syndicate organization and operation of the first order. All of Obama's policy positions point right back to these socialist criminals agenda to wreck capitalism in the world. . Obama was picked specifically because of his Communist Socialist Marxis philosophy, education, and training by Alinsky, he is very easily manupilated, especially by Communist and Marxist. These financial criminals are behind this countries financial problems specifically and world wide as a consequence. Mauarice Strong is advising the Chineses on their currancy manupilation and their handling of the US debt which they hold.