Warren Buffett wants more small-business aid, less income inequality, and a robust economic recovery. He'll be happy to have Janet Yellen as treasury secretary
Warren Buffettis likely pleased that President-elect Joe Bidenintends to appoint Janet Yellenas treasury secretary.
- The billionaire investor and Berkshire Hathaway CEO praised the former
Federal Reservechief in 2014, and will likely support her efforts to stimulate the US economy, boost employment, and combat income inequality.
- "I think that the new administration will act promptly to extend help to small businesses," Buffett said at a private event last week.
- On the other hand, Yellen criticized and slapped restrictions on Wells Fargo, one of Berkshire's oldest holdings, while serving as the Fed's boss.
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Warren Buffett may be celebrating President-elect Joe Biden's plan to appoint Janet Yellen as treasury secretary.The famed investor and Berkshire Hathaway CEO praised Yellen soon after she took over as Federal Reserve chair in 2014.
Buffett is likely to be supportive of her efforts. During a small-business event last week, he lauded the Fed for moving quickly to shore up
Buffett, who has pledged to donate more than 99% of his money to charitable causes, has also bemoaned the wealth gap. He proposed a more generous earned-income tax credit and higher taxes on the super rich as possible solutions earlier this year.
One point of tension between Buffett and Yellen could be her past targeting of Wells Fargo, one of Berkshire's oldest holdings.As Fed chair, she slammed the bank's fake-accounts scandal as "egregious and unacceptable" in a news conference in 2017. She proceeded to slap an asset cap on Wells Fargo in February 2018, preventing it from expanding until it improves its governance and compliance with banking regulations.
Buffett's company has been a Wells Fargo shareholder for more than 30 years. It owned more than 13% of the bank in 1994, and held more than 500 million shares worth north of $27 billion in 2016. However, it slashed its holding to fewer than 130 million shares, worth less than $3 billion, in the third quarter of this year.Yellen's restrictions may well have factored into Berkshire's decision to sell the bulk of its position. However, Buffett has also criticized Wells Fargo's handling of the scandal, and now owns a far smaller stake in the bank, so he's unlikely to bear a grudge.
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