Warren Buffett: Nothing 'Unique' About Goldman Sachs Deal Targeted By The SEC (VIDEO)

In two interviews this morning, Warren Buffett reiterated his support for Goldman Sachs in the wake of the SEC's civil fraud charges levied against the bank.

In an interview with CNBC, which was echoed in an interview with Good Morning America, Buffett said there's nothing "unique" about Goldman's now infamous Abacus transaction. "When there's a mass delusion, you can say everyone is to blame," Buffett said. "There's no villain."

When asked whether or not his views were colored by his investment in Goldman Sachs, Buffett said the fact that he has some $5 billion invested in the bank is evidence that he believes in management and in the company itself. He added that he'd rather have CEO Lloyd Blankfein running the firm than anyone else. Buffett also added that he's had "three or four" conversations with Blankfein about the SEC's case.

Coming to the defense of Moody's, the much-criticized credit rating agency that his company has a 20 percent stake in, Buffett said the company had a "great business model." He added that, during the financial crisis, the company "was no smarter and probably no more stupid than most of the American public."

WATCH Buffett's CNBC interview:

WATCH: Good Morning America's interview with Buffett

Comments

[303]

11:59 PM on 05/10/2010

It's pretty sad to see Warren Buffet-- after an illustrious and respected investment career spanning decades-- get himself pulled down to the depths by bottom feeders at Moodys and Goldman Sachs. Can hardly wait to hear Buffet's Checkers Speech, explaining his devious dance with WS crooksters.

[DomainDiva]

07:12 PM on 05/17/2010

That's because GS owes WB 10% interest on his little 'investment' in GS when they almost went tango uniform back in September 2008. WB wants his 10% and he is going to all the mouthing he needs to do to make sure he gets his.

[saintjule]

12:23 PM on 05/06/2010

Of course Buffett would defend Goldman. He has both feet planted in this sewage clear up to his knees. When you can fly a private jet all the way to China with Becky Quick on board to hire cheap labor, you would defend the devil if it made you a profit.

[msjimmied]

12:01 AM on 05/05/2010

So this was par for the course? Great! now they tell us. And we silly little fools should just work hard, hand them over our retirement money and savings to play with. After all, it is Wall Street, when even if they are caught, the fine is but a tiny fraction of their profits, cost of doing "business".

http://trueslant.com/matttaibbi/2010/05/04/goldman-naked/

[saintjule]

12:30 PM on 05/06/2010

YUP. They call that creating wealth on Wall Street. 401's are back right? No they have hemorrhaged billions and the poor sob's drawing lost several billions when they got their rmd's. Sheila bear, the only stoic in this crap shoot is still bailing out depositors. Example: if you're t. Boone and can sell a billion in oil futures price drops you can buy them back at a fraction and drive the price right back up. Complicated? Don't pick up the soap.

[BBackSoon]

05:51 PM on 05/04/2010

So they should look at all the GS deals?

[Faxus]

05:10 PM on 05/04/2010

Warren Buffett is suffering from a serious case of rich old man's syndrome. Look at the way he lives. Same old house, tired old car, the man is as rich as a king and lives like his wealth means nothing. There is something wrong with a man who does not reap what he has sown. Any normal person at his age with his wealth would be on their private island enjoying the benefits of his labors, not still toiling away in the dirty canyons of high finance. He is so obviously addicted to power and attention. Alan Greenspan was similarly afflicted but his wealth was vicarious. I suspect Bernie Madoff had it but his wealth was stolen. Rich Old Man's Syndrome affects only a small part of the population but it's trickle-down effect is devastating on the middle class. Fortunately there is a cure, it's called retirement.

[mariusvinchi]

02:52 PM on 05/04/2010

Clearly Buffet has a vested interest in the success of Goldman and the "status quo" with the ratings agencies...Why does the media give a pulpit to individuals who are completely biased without a counterpoint?

[nopilikia]

03:41 PM on 05/04/2010

So true. He still retains a 16% plus stake in Moody's

[davewill]

01:55 PM on 05/04/2010

But Moody's wasn't supposed be "no more stupid than most of the American public". They were supposed to perform due diligence and accurately rate the risk. They didn't.

[dukeitout]

01:18 PM on 05/04/2010

Warren Buffet will say anything to preserve stockholder value, especially if he's the stockholder.

[uniquindividual]

08:48 AM on 05/04/2010

I meant didn't have the...

[uniquindividual]

08:41 AM on 05/04/2010

"Nothing Unique"

Isn't that the problem?

Millions of home loans were handed to individuals who don't have the income to ever pay it back, Before repeal of Glass Steagal in 1999 and the new fantabulous "Ownership Society" in 2004 it was very very unique.

[PhilipTaylor]

04:05 AM on 05/04/2010

Warren Buffett: “G0LDMAN IS BEHAVING AS IT ALWAYS DOES!”

Warren: “I want you to know that the Abacus transaction at the heart of the Securities and Exchange Commission's fraud case against Goldman is not only frivolous but doesn't have anything to do with my warrants to buy $5 billion in Goldman stock at $115 a share.”

Warren: “To be honest, I don't know what Goldman does with all of their derivatives and whiz-bang trading gizmos, but I do know that Lloyd Blankfein is the best person to lead Goldman until he is indicted.”

Warren: “You may have heard that we lobbied hard before the Senate Agriculture Committee to carve out an exemption for our company when it came to placing new restrictions on derivatives, the financial instruments I've called ‘financial weapons of mass destruction.’ As you can imagine, the media has spun and mixed up this story like a DQ Blizzard machine, though their story turned out much less delicious.”

http://www.marketwatch.com/story/buffett-adds-a-few-thoughts-on-goldman-2010-05-04?pagenumber=1

[DrJykell]

12:16 AM on 05/04/2010

The "bubble" has been around long enough for ppl to not only recognize,,, but also pinpoint the poison pill inside it,,,,,,,,,,,,,that pops it,,,,,,,, well in advance..

It seems as if this lesson falls victim to amnesia, or perhaps the techniques are just passed along with a wink and a nod from generation to generation.
http://www.consortiumnews.com/2010/050310a.html

The media has begun it's natural alignment with Wall St. and the Govt will soon follow...

[Markovich]

11:55 PM on 05/03/2010

Selling my Berk next week. When Warren throws a support line to Wall Street's "mass delusion" while he trades derivatives and buys GS pref, it's time to get out. His worst moment in 20 years and wouldn't you know it's his insuring derivatives that changes him. When you become the insurance company for mass default, it must change you.

[jian1312]

11:19 PM on 05/03/2010

Sure, I never thought Goldman Sachs is unique in their business dealings either. But my conclusion is, sue them all. Make it too expensive or administratively impossible for banks to do this kind of deals, where they don't disclose critical information to non-critical clients.

[WoolStreet]

11:10 PM on 05/03/2010

NYT's sorkin said "cynics" might point out Buffett holds $5 billion in Goldman stock....

Yeah, only a cynic would point that out...we should just let Worm Buffet adjudicate the entire process eh sorkin...