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Abu Zaid: I believe that the Iranian operation was multi-layered, combining cyber and electronic attacks with coordinated on-the-ground infiltrations by agents
Abu Zaid: Usually, archives of such sensitivity are typically protected by a full-scale security system, but it appears that Iranian intelligence managed to make use of a gap in it
Strategic military expert Nidal Abu Zaid: Iran has stripped "Israel" of the superiority and deterrence long boasted by its security minister, chief of staff, and other top officials
Fallahpour: Iran may use these documents in its battle with the United States and Western countries over its nuclear program
Fallahpour: Iran may have obtained additional documents related to "Israel's" regional projects, not just its nuclear program
Fallahpour: The coming weeks will be full of surprises, as Iran has forced Israeli intelligence agencies into a state of psychological exhaustion
Al Mayadeen's correspondent in Tehran, Siavash Fallahpour: Iran has redefined the concept of deterrence, shifting it away from traditional military balance toward a new strategic framework
Sources to Al Mayadeen: Number of documents so great that merely studying them, along with accompanying images and footage will require a great deal of time.
Sources to Al Mayadeen: Large data trove was confirmed to have arrived to "safe sites".
Sources to Al Mayadeen: Operation had taken place in past, but large size of documents and need to transfer entire batch inside Iran necessitated secrecy.

Warren Buffett says bank CEOs and directors should 'suffer'

  • By Al Mayadeen English
  • Source: News websites
  • 8 May 2023 12:08
  • 1 Shares
4 Min Read

The billionaire said those who run banks should face punishments when they run into trouble instead of being saved.

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  • Warren Buffett says CEO and directors should
    Warren Buffett talks to a reporter in the exhibit hall at the company's annual meeting in Omaha, Nebraska, US. May 5, 2018. (Reuters)

Berkshire Hathaway's owner Warren Buffet asserted that when US bank directors face difficulties, they "should suffer," and that he was leery of most banking stocks due to "messed-up incentives."

The remarks by Buffett, 92, dubbed the "Oracle of Omaha" by investors, came a week after the failure of First Republic Bank, the largest bank failure in the United States since the 2008 financial crisis.

Buffett criticized politicians, regulators, and the press for their handling of the recent collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank, saying their "very poor" message had unduly panicked customers.

He expressed that the CEO and directors should be the ones to suffer when a bank they run falls into a hole. According to him, if not, it "teaches the lesson that if you run a bank and screw it up, you’re still a rich guy, the world still goes on … That is not a good lesson to teach the people who are holding the behavior of the economy in their hands."

Buffett said he was still wary of bank equities and had lately cut his exposure to the industry - with the exception of Bank of America, which he loved.

"The incentives in bank regulation are so messed up, and so many people have an interest in having them messed up... it's totally crazy" he remarked, adding that people who do the wrong thing must face consequences.

“If you look at First Republic, you can see that they were offering non-government guaranteed mortgages at fixed rates for jumbo amounts – that’s a crazy proposition to the advantage of the bank. It was in plain sight and we all ignored it until it blew up.”

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Charlie Munger, the Berkshire Hathaway vice-chairman and Buffett's right-hand man, expressed that “I don’t think having a bunch of bankers, all of whom are trying to get rich, leads to good things. I think bankers should be more like an engineer, avoiding trouble rather than trying to get rich … It’s a contradiction in values.”

Supervisors failed to recognize dangers

A recent analysis of SVB's failure by the US Federal Reserve attributed deregulatory policies implemented under Donald Trump's administration for the lender's demise. Many of the checks and regulations on lending by smaller banks were eased by legislation in 2018.

Supervisors failed to recognize the magnitude of dangers, according to the first official assessment on the crisis, but they were also taking "a less assertive supervisory approach" as a result of legislative changes, it said.

Buffett also criticized the government's communication with the public about the safety of their money, saying it was confusing. His own father lost his job due to a bank run in 1931. 

He said he was preparing for a risk of a worsened banking crisis but added that if the system gets stalled temporarily, "we want to be there."

Read more: US banking crisis to worsen if structural problem not addressed

In March, America's 16th-largest bank saw 60% of its shares plunge, making it the second-largest bank failure in US history following the great market collapse of 2008, prompting regulators to seize its assets and halt trade on its stocks in Nasdaq.

Last week, JPMorgan Chase CEO and billionaire Jamie Dimon told analysts that the present banking crisis was over. The announcement was made moments after JPMorgan Chase acquired First Republic Bank. 

  • banking crisis
  • Warren Buffett
  • United States
  • US Banks

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