Here’s more from Warren Buffett on CNBC this morning. This time he talks to Becky Quick about ‘Too Big To Fail’.
CNBC host Joe Kernen sides with the Occupy Wall Street protesters, saying:
I have real problems with Too Big to Fail. And I think that the Occupy Wall Street movement – they may not know exactly why they’re upset – but the notion you can — I was talking about it over this weekend. Let’s say you’re a public employee and went to Las Vegas with tax money. You were allowed to put as much tax money that you want on black or red or on black jack. and if you lost it, the taxpayers lost it and you didn’t care. But if you made it, you got to keep it. That’s basically what Too Big to Fail institutions are able to do, and to leave, you know, to leave with taxpayer money, with the profits. And I see why Occupy Wall Street is — has a problem with that, although I’m not sure that they understand.
Kernen asks Buffett whether we can regulate them to “keep them honest” or whether we need to “break them up”. Buffett responds in the video below; he doesn’t really answer the question though. Buffett also talks a bit about derivatives (uncomfortably) as well before Becky Quick moves the conversation to more pleasant topics, Berkshire’s businesses.
P.S. – when watching, remember that, as Kerman says, Warren Buffett has “a vested interest in Too Big To Fail”.