Buffett's Favorite Banker Discusses The Absurd Amount Of Money He Has To Invest In Compliance

Jun 01, 2015

Warren Buffett (Trades, Portfolio)'s favorite bank is Wells Fargo (WFC, Financial), which he has held for decades and continues to buy.

CEO Kovacevich explains how banks like his are being forced to spend absurd amounts of money on compliance. He cites JPMorgan (JPM, Financial) as an example of a company that has gone from having 1,000 staff dedicated to compliance to 20,000.

These requirements are overkill in response to the housing crisis of 2008.

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