Berkshire Hathaway CEO Warren Buffet appeared on Bloomberg TV yesterday, and spoke out against President Obama’s plan to tax certain financial institutions. Bloomberg quotes the Oracle of Omaha:

“I don’t see any reason why they should be paying a special tax.” Supporters of the plan to tax the banks “are trying to punish people,” he said. “I don’t see the rationale for it.” “Look at the damage Fannie and Freddie caused, and they were run by the Congress,” said Buffett. “Should they have a special tax on congressmen because they let this thing happen to Freddie and Fannie? I don’t think so.”1

Buffett held a fundraiser for Obama and advised the future president on economic issues during his campaign.

In addition to levying an additional tax on certain financial institutions, President Obama intends to impart new restrictions on banks. 2 These are two factors that explain in part why the “Dow Turns Negative for ‘10.”

  1. http://www.bloomberg.com/apps/news?pid=20601087&sid=aPdhurDmpnhE&pos=1 [↩]
  2. http://online.wsj.com/article/SB10001424052748703699204575016983630045768.html [↩]