European leaders, who have directed about $350 billion to aid Greece, Ireland and Portugal, need to do more to resolve the continent's debt crisis, Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) Vice Chairman Charles Munger said.
"They are way behind the curve," Munger, 87, told Bloomberg Television's Shivaune Field in an interview today in Los Angeles. "They have to stop shooting at this elephant with a pea shooter."
Berkshire has cut its holdings of European sovereign debt and Chairman Warren Buffett said last month that his firm wasn't prepared to invest in the continent's banks. Munger, who advises Buffett on Berkshire's investments, praised policy makers in the U.S. for the 2008 bank bailouts. European lenders must turn to investors as they face losses on bond holdings, with nations including Greece struggling to repay debts, Buffett said.
"They need capital in their banks, in many of their banks," Buffett, who is also Berkshire's chief executive officer, said in a Sept. 30 interview. "We would not be a good prospect."
Buffett agreed in August to buy $5 billion of preferred stock in Bank of America Corp. (NYSE:BAC) to help
the U.S. lender protect against mortgage-related losses and prepare for higher capital requirements. The Charlotte, North Carolina-based bank has lost about half its market value this year as it takes provisions against faulty home loans.
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