Follow TopicFollow Contributor Share Feedback
Warren Buffett Calls for Accountability in Banking Crisis

Warren Buffett Calls for Accountability in Banking Crisis

by Starling Insights

Starling Insights Editorial Board

May 12, 2023

Observations

Warren Buffett, the billionaire investor and CEO of Berkshire Hathaway, has called for leaders of failed banks to face punishment.

The "CEO and directors should suffer" when banks get into trouble, Buffett argued. Otherwise, it "teaches the lesson that if you run a bank and screw it up, you're still a rich guy, the world still goes on."

Buffet added that he is wary of investing in banking stocks because "the incentives in bank regulation are so messed up and so many people have an interest in having them messed up."

Charlie Munger, Berkshire Hathaway's vice-chairman, echoed these sentiments. "I don't think having a bunch of bankers, all of whom are trying to get rich, leads to good things," Munger said. "I think bankers should be more like an engineer, avoiding trouble rather than trying to get rich … It's a contradiction in values."

Join The Discussion

See something that doesn't look quite right?

We strive to provide high quality and accurate content at all times. With that said, we realize that sometimes links break, new information becomes available, or there is something that you feel we may have missed.

If you see something that you think we should be aware of, we would love to hear from you. Feel free to drop us a note below and leave your name and contact info if you'd like to hear back from us.

Thank you for being a key part of the Starling Insights community!