Buffett Buttons His Lips, Won't Speak On Election Or Wells Fargo Until November
Wells Fargo & Co (NYSE: WFC)'s largest shareholder, Warren Buffett, won't be commenting on the financial institution's growing scandal.
Buffett, speaking to Fox Business, said he will wait until November to speak about the bank's scandal. The Oracle of Omaha owns nearly 10 percent of the bank, but there may be some cause for concern following the scandal given Buffett's philosophy of investing in quality leaders.
Fox Business recalled the Salomon Brothers bond scandal, which occurred 25 years ago this month in which traders submitted false Treasury bond bids to avoid trading rules.
Buffett said during a Congressional sub-committee at that time that he would be "understanding" if a company loses money through legitimate business practices. However, he will be "ruthless" if a company "loses a shred of reputation" at his expense.
Investors could be quick to point out that Wells Fargo has already lost more than just a "shred" of reputation given the stock's nearly $25 billion in market cap which was wiped out once the scandal came into light.
The "shred" of reputation could also worsen as the House Financial Services Chairman Jeb Hensarling told Fox Business he plans on issuing a subpoena to Wells Fargo's top executives, including its Community Banking Chief Carrie Tolstedt who left the company in July with a $125 million pay package.
However, Fox Business suggested Buffett could be forced to comment if more damaging revelations appear since he is after all the largest shareholder.
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