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Buffett Defends Goldman; Berkshire Posts Profit
wsj ^ | MAY 1, 2010 | SCOTT PATTERSON And ERIK HOLM

Posted on 05/01/2010 2:08:55 PM PDT by george76

Warren Buffett offered a vigorous defense of Goldman Sachs Group Inc. Saturday, saying the embattled firm hadn't engaged in improper activity and shouldn't be blamed for the losses of its clients.

Goldman has been reeling from Securities and Exchange Commission allegations that the bank had engaged in fraudulent activities in relation to a mortgage deal called Abacus 2007-AC1. Goldman says it did nothing wrong.

The billionaire investor said he fully supported Goldman CEO Lloyd Blankfein. Asked if he could choose a successor for Mr. Blankfein, Mr. Buffett said: "If Lloyd had a twin brother I'd go for him."

Buffett also said the fact that Paulson & Co., the New York hedge fund that worked with Goldman and ACA to structure the Abacus deal, was on the other side of the Abacus deal was irrelevant. "It doesn't make any difference whether it was Paulson on the other side of the deal or whether Goldman was on the other side of the deal or whether Berkshire was on the other side of the deal,"

Buffett also said Berkshire made several mistakes in the operation of its NetJets private jet unit. He said the biggest mistake was that the company was purchasing planes at prices that were "fictitious" in comparison to the prices it was able to resell them at a later date.

"We let our operating costs get out of line," Mr. Buffett said in response to a question about NetJets. "We lost a lot of money."

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; News/Current Events; US: Nebraska; US: New York
KEYWORDS: abacus; abacusdeal; berkshire; buffett; goldman; goldmansachs; hedgefund; paulson; warrenbuffett

1 posted on 05/01/2010 2:08:55 PM PDT by george76
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To: george76

Its phony to go after Goldman and ignore Fannie Mae.


2 posted on 05/01/2010 2:20:34 PM PDT by marron
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To: marron

Reminds me of the Clinton Hackes attacking Microsoft and starting the dot.com collapse


3 posted on 05/01/2010 2:33:58 PM PDT by Rodm
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To: george76

Tough Toenails, Buffett. You voted for the idiot. Now live with it.


4 posted on 05/01/2010 2:54:41 PM PDT by YHAOS (you betcha!)
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To: george76; marron; Rodm

I find it incredible that someone as savvy as Buffet when it comes to investing is so dumb when it comes to politics.

And I suppose the same could be said of Goldman Sachs as well.

How could they not see that they were supporting a closet Marxist during the election.

And Buffet better be careful about what he says - or they’ll be going after Berkshire next.


5 posted on 05/01/2010 2:57:26 PM PDT by aquila48
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To: aquila48
And Buffet better be careful about what he says - or they’ll be going after Berkshire next.

I would luv that.

6 posted on 05/01/2010 3:27:43 PM PDT by Digger (If RINO is your selection, then failure is your election)
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