Warren Buffett Does Not Plan To Sell Shares in Wells Fargo

In an interview on CNN released today, Warren Buffett mentioned that he is not planning to sell any of the 500 million shares of Wells Fargo (NYSE:WFC) owned by Berkshire Hathaway (NYSE:BRK.A, BRK.B), representing a 10% stake in WFC.  Warren Buffett had previously been silent on this issue.  The Wells Fargo scandal (opening accounts for customers without their knowledge) was revealed in late September.

The scandal was an “egregious mistake,” Mr. Buffett said. “Wells Fargo designed a system that produced bad behavior. When you find that out you’ve got to do something about it, and the big mistake was they didn’t do something about it.”

Berkshire applied to the Federal Reserve earlier in the year for permission to expand its Wells Fargo holding beyond its 10% stake and pledged to be a passive investor. Because of that, Mr. Buffett said, he couldn’t speak out publicly about the scandal or directly advise the board of directors.

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