Warren Buffett See’s Profitibility for Banks and Gives Billions to Charity

According the recent reports, billionaire Warren Buffett feels confident that the banking industry in the United States still has banks which will be able to maintain profitability. Buffett, who through his company Berkshire Hathaway Inc., is the largest stockholder in Wells Fargo, spoke about the industry on Bloomberg television today.

“Reducing leverage in the financial system was a good idea,” Buffett said. “Leverage causes a lot of problems.” Buffett went on to say that he believes that the banking industry can “still be plenty profitable.” This is all despite fears that recent regulation limiting the fees which banks can charge would reduce profits.

While some in the industry fear that the regulations will slow the economic growth, Buffett counters that the regulations will help to improve stability.

Yesterday it was announced that Warren Buffett gave away stock valued at about $1.5 billion in his annual gift to the foundation established by Bill Gates. In addition to his generous to the Bill Gates foundation, the billionaire is urging fellow billionaires to commit most of their vast wealth to philanthropic causes.