Legendary investor Warren Buffett spoke out about the cross-selling scandal that has rocked Wells Fargo & Co., telling CNBC he is disappointed in how the bank — Colorado's largest — handled the fake accounts scandal.
Buffett's comments about the bank are closely watched because he owns about 10 percent of it and remains its largest shareholder through his holding company, Berkshire Hathaway Inc. The company (NYSE: BRK.A) also owns Denver-based Johns Manville.
The "Oracle of Omaha" left out any mention of Wells Fargo in his hotly anticipated annual letter to Berkshire shareholders last Saturday, but his comments in the CNBC interview on Monday were scathing.
"A huge mistake was made at Wells," said Buffett. "Not in cooking up the incentive plans — cross selling is fine, I mean, you want to have incentives for people to do it — but you don't want to have it lead to crazy behavior, which it did."