Buffett: No role for Berkshire in Frannie


"Any time a large financial institution starts promising regular earnings increases, you're going to have trouble," Warren Buffett famously said in 2010, explaining why he dumped stakes in Freddie Mac (FMCC) and Fannie Mae (FNMA) many years before the housing bust.

As for whether Berkshire Hathaway (BRK.A, BRK.B) has any interest in the GSEs at this point, the answer is "no," says Buffett in a Bloomberg interview. Buffett does though, see a role for government in housing finance. "The 30-year fixed-rate mortgage is very good for the American public and I think that you will need government participation in some way to bring the costs down.”

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Comments (6)
  • philipmax
    , contributor
    Comments (422) | Send Message
     
    I am disappointed by W. Buffett's remarks, as I am quite aware that he is an unofficial spokesman for Uncle Sam. He is intimately connected to every aspect of government activity. It sounds and feels like there is no room for the shareholders in the New World Order. Whether through the executive, legislature, or the courts, the deck is stacked.
    24 Apr 2014, 08:30 AM Reply Like
  • herohero
    , contributor
    Comments (32) | Send Message
     
    Buffet is being honest here - but he threw the government a bone by conceding that they have some sort of righteous mission to ensure housing loans stay cheaper than the market demands - they do not and should stay out of it.
    24 Apr 2014, 09:38 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7077) | Send Message
     
    Wish I knew this so I wouldn't have lost nearly everything on Freddie.
    24 Apr 2014, 11:22 AM Reply Like
  • heyo
    , contributor
    Comments (65) | Send Message
     
    cant trust the government friend
    24 Apr 2014, 12:46 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
     
    U.S. Government should follow AIG to set Fannie Mae and Freddie Mac free by getting rid of its incompetent politicians in management. Regulate and set guideline but let professional management running companies.
    24 Apr 2014, 01:37 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11225) | Send Message
     
    Buffett won't go against Obama.

     

    Period.
    25 Apr 2014, 05:43 AM Reply Like
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