Buffett backs Goldman CEO, says Berkshire happy with investment in firm

Warren Buffett previewed Berkshire's first-quarter earnings report at the annual meeting, saying the firm earned $3.6 billion.
Warren Buffett previewed Berkshire's first-quarter earnings report at the annual meeting, saying the firm earned $3.6 billion. (Nati Harnik/associated Press)
By Josh Funk
Sunday, May 2, 2010

OMAHA -- Berkshire Hathaway chief executive Warren E. Buffett declared his support for Goldman Sachs chief Lloyd C. Blankfein on Saturday, saying he has no plans to sell his company's stake in the bank, which is fighting fraud allegations from the Securities and Exchange Commission.

Buffett and Berkshire Vice Chairman Charles T. Munger praised Goldman before a crowd of about 40,000 at Berkshire's annual shareholder meeting. Both executives said they're happy with Blankfein's leadership and that they don't view the SEC's civil fraud allegations against Goldman as a strike against him. "There's really no reason to think about somebody else running Goldman," Buffett said. The allegations in a lawsuit filed April 16 have raised questions about Blankfein's tenure.

Berkshire owns $5 billion of preferred stock in Goldman.

"We love this investment," Buffett said.

Buffett is a director of The Washington Post Co.

Buffett and Munger both expressed confidence in Blankfein.

"There are plenty of CEOs I'd like to see gone in America, and Lloyd Blankfein is not one of them," Munger said.

-- Associated Press


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