Wednesday, September 10, 2008

Buffett Orders A Major Halt In Insuring Bank Deposits; 1,500 Banks Impacted

Is Warren Buffett scared of the risks in the banking sector? I think so.

Buffett's Berkshire Hathaway Inc. has told one of its subsidiaries to stop insuring bank deposits above the amount guaranteed by the federal government, WSJ is reporting.

The subsidiary, Kansas Bankers Surety Co., is notifying about 1,500 banks in more than 30 states that it will no longer offer a program called "bank deposit guaranty bonds."
-Robert Wenzel

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