“The worst of the crisis in Wall Street is over,” Mr Buffett said

May 4, 2008 at 1:51 pm | Posted in economy, finance, USA | Leave a comment
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However, Berkshire Hathaway, the company Mr Buffet took over in 1965, has not escaped the credit crisis.

It saw its first quarter profit tumble 64%, hurt by losses tied to derivatives contracts and a steep slide in insurance premiums.

“The worst of the crisis in Wall Street is over,” Mr Buffett told Bloomberg Television shortly before the weekend meeting began.

“In terms of people with individual mortgages, there’s still a lot of pain left to come,” he added.

Succession fears

Mr Buffett, ranked the world’s richest man by Forbes magazine, praised the Federal Reserve’s rescue of Bear Stearns.

He said the move avoided financial market chaos.

“I think the Fed did the right thing in stepping in on Bear Stearns,” Mr Buffett said.

“Just imagine the thousands of counterparties around the world having to undo contracts.”

The central bank helped broker the buyout by JP Morgan, after financial institutions became reluctant to lend to Wall Street’s fifth-largest investment bank.

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