Bad bankers should be punished · Transcript · BuffettMungerGPT

Charlieyou will have to have a punishment for the people that do the wrong thing and if you take first republic for example you could look at their 10k and you could see that they were offering non-government guaranteed mortgages to in jumbo amounts at fixed rates sometimes for 10 years before they changed to floating and that's a crazy proposition if it's to the advantage of the bank they get it they get the guy coming in and says i'll refinance at one and a half percent and then one percent and if it's if it's advantage the other way the fellow keeps it out 10 years you don't give options like that but but that's what first republic was doing it was a plain sight and the world ignored it till blew up and uh some of the stock in some of these banks that were held by insider was a sold and who knows whether they had a plan or whether they some plan that was innocent or whether they started sensing what was coming but but you do know that the directors are not going to be able to read some book or anything like that but they do they do have the ability to hold the CEO accountable. CEO gets the bank in trouble both the CEO and the directors should suffer. The stockholders of the future shouldn't suffer. They didn't do anything. It doesn't teach anybody any lessons or anything. It teaches the lesson is that if you run a bank and you screw it up, you're still a you're still a rich guy and the clubs don't drop you and the charity groups don't put asking it to their benefits and the world goes on. That is not a good lesson to teach people who are holding the behavior of the economy in their hands. Well, I'm so old-fashioned that I kind of liked it better when banks didn't do investment banking. That makes me very outmoded in the modern world. And the country decided it was contrary to public interest for a while and then the banks wanted to get back into it. Did they ever? Yeah. No. I don't think having a bunch of bankers, all of them are trying to get rich, leads to good things. But I think a banker should be more like an engineer. He's more like in avoiding trouble than he is getting rich. I've got my own personal money, and I'm probably above the FDIC limit, and I've got it with a local bank, and I think, I don't worry about it in the least. But in terms of owning banks, events will determine their future. You've got politicians involved. You've got a whole lot of people don't really understand how the system works. And I would say that you've had something less than a perfect communication between various people and the American public. So the American public is probably as confused about banking as ever. And I like Bank of America. I like the Bank of America. and I propose the deal to them, so I stick with it. But do I know how to project out what's going to happen from her? The answer is I don't because I've seen so many things in the last few months, which really weren't that unexpected to me.