OMAHA, Neb. (AP) -- Billionaire Warren Buffett says American banks are stronger than they've been in years and won't derail the economy.
Berkshire Hathaway has large investments in Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB) and Bank of America (NYSE:BAC), and Buffett pays close attention to their condition. Berkshire also holds warrants to buy $5 billion in Goldman Sachs (NYSE:GS) shares.
Buffett says the banks have largely cleared out the bad assets that hurt their balance sheets. And the current low interest rates have helped them.
The country's 19 biggest banks are about to undergo the Federal Reserve's "stress tests" to see whether they could withstand a severe U.S. recession.
The Motley Fool recommends Berkshire Hathaway, Goldman Sachs Group, and Wells Fargo & Company. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, and Wells Fargo & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Under-the-Radar Stories in the Stock Market Last Week
Branded consumer staples aren't what they used to be, the rise of robot investors, and Berkshire Hathaway takes one step closer to implementing its post-Buffett succession.
Warren Buffett on Tax Reform
The Oracle of Omaha thinks the tax reform bill will lift the stock market, but that doesn't necessarily mean he's a fan.
Checking Up on Berkshire’s $38 Billion Stock Bet
Berkshire Hathaway has made a fortune betting that stocks will go up over the long haul.