Many people have spoken at great length about the evils of Wall St. but the Oracle is not buying the argument that Wall St. is evil itself. Keeping up the trend this week of refusing to name names, WB said part of the problem is ability of certain individuals to do their best George Costanza impression by leaving on top at the same time their respective organizations are in mortal danger.
"You have to put in something where there is downside to people who really mess up large institutions," Buffett said in an interview conducted by the chief executive officer of Business Wire, the Berkshire subsidiary that posts corporate press releases. "Too many people have walked away from the troubles they have created for society, not just for their own institution, and they have walked away rich."
Ok so now we've got the problem, any ideas for a solution?
"What you have to change in Wall Street, is you have to make sure that in addition to carrots, there are sticks," he said.
Sounds reasonable. But what do you think about the overall Wall St. model? It's seemed to "work" pretty well for quite a while for quite a few people.
"And it can't be a one-way street where they are making ungodly amounts of money when things are good and then they move on to someplace else for a while when things are bad."
Better start collecting those sticks now.
Buffett Says Wall Street Pay Must Have 'Downside' [Bloomberg]