Buffett: US banks in better shape than Europe's

May 7, 2012
Buffett says investors shouldn't act on headlines

In this May 5, 2012, photo, Warren Buffett, chairman and CEO of Berkshire Hathaway, smiles on the exhibit floor where Berkshire products are showcased, prior to the annual shareholders meeting in Omaha, Neb. Buffett appeared on CNBC Monday morning MAY 7, 2012. (AP Photo/Nati Harnik)

OMAHA, Neb. (AP) -- Billionaire Warren Buffett says American banks are in much better financial shape than European counterparts because of measures taken during the financial crisis.

The leader of the conglomerate Berkshire Hathaway Inc. said during a CNBC interview on Monday that the United States already injected more capital into its banks and forced them to clean up their balance sheets.

Buffett says the United States did a better job imposing austerity measures and improving its fiscal situation after the financial crisis of 2008. But he says the Unites States had a better structure to deal with the problems.

Buffett also says the size of America's banks wasn't the source of the problems. He says they just need enough capital.

His TV appearance on Monday followed the company's annual meeting over the weekend, drawing more than 30,000 people.